CFPB TRID Sec. 6 - Are creditors allowed to require additional verifying information other than the six pieces of information that form an application from consumers before providing a Loan Estimate?

Compliance > Regulation Z - TILA / TRID Specific > Loan Estimates
Q:  Are creditors allowed to require additional verifying information other than the six pieces of information that form an application from consumers before providing a Loan Estimate?
 
A:  No. A creditor or other person may not condition providing the Loan Estimate on a consumer submitting documents verifying information related to the consumer’s mortgage loan application before providing the Loan Estimate. (§ 1026.19(e)(2)(iii); Comment 19(e)(2)(iii)-1)
 
For example:
  • A creditor may ask for the sale price and address of the property, but may not require the consumer to provide a purchase and sale agreement to support the information the consumer provides orally before the creditor provides the Loan Estimate.
  • A mortgage broker may ask for the names, account numbers, and balances of the consumer’s checking and savings accounts, but the mortgage broker may not require the consumer to provide bank statements or similar documentation to support the information orally provided by the consumer before the Loan Estimate is provided to the consumer.
 
 
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/
 

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