CFPB TRID Sec. 6 - What is an “application” that triggers an obligation to provide a Loan Estimate?

Compliance > Regulation Z - TILA / TRID Specific > Loan Estimates
Q:  What is an “application” that triggers an obligation to provide a Loan Estimate?
 
A:  An application means the submission of a consumer’s financial information for purposes of obtaining an extension of credit. For transactions subject to § 1026.19(e), (f), or (g), an application consists of the submission of the following six pieces of information:
 
  1. The consumer’s name;
  2. The consumer’s income;
  3. The consumer’s social security number to obtain a credit report;
  4. The property address;
  5. An estimate of the value of the property; and
  6. The mortgage loan amount sought.
 
An application may be submitted in written or electronic format, and includes a written record of an oral application. (Comment 2(a)(3)-1)
 
 
NOTES:  This definition of application is similar to the definition under Regulation X prior to the issuance of the TILA-RESPA Rule. (§ 1024.2(b)). The Bureau revised the definition of application to remove the seventh “catch-all” element of the definition under Regulation X, that is, “any other information deemed necessary by the loan originator.”   The six pieces of information must be submitted for purposes of obtaining an extension of credit. The information is not deemed submitted for this purpose simply because it exists in a creditor’s files or on a creditor’s computer system.
 
 
This Loan Estimate / LE information can be found in the CFPB's TILA-RESPA Integrated Disclosure rule compliance guide - http://www.consumerfinance.gov/regulatory-implementation/tila-respa/
 

Add Feedback