CFPB TRID Sec. 6 - Can a creditor review detailed written documentation of income and assets prior to delivering a Loan Estimate?

Compliance > Regulation Z - TILA / TRID Specific > Loan Estimates
Q:  Can a creditor review detailed written documentation of income and assets prior to delivering a Loan Estimate?
 
A:  Yes. A creditor or other person can request, collect, and review documentation or additional information voluntarily provided by the consumer prior to providing a Loan Estimate. However, the TILA-RESPA Rule prohibits a creditor from requiring a consumer to submit documents verifying information related to the consumer’s application, such as income and asset information, before providing a Loan Estimate. Additionally, the creditor cannot explicitly or implicitly represent to the consumer that it will not provide a Loan Estimate without the consumer first providing verifying documentation. (See § 1026.19(e)(2)(iii); Comment 19(e)(2)(iii)-1)
 
If a consumer requests a pre-approval or pre-qualification and provides five of the six pieces of information that constitute an application, the creditor is not yet obligated to provide a Loan Estimate. (Comment 2(a)(3)-1.i). So long as the consumer does not provide that sixth element, for example, the property address, the creditor is not required to provide a Loan Estimate and may simply provide a pre-approval or pre-qualification in compliance with its current practice and other applicable law. However, if the consumer provides all six elements of the application, the TILA-RESPA Rule requires the creditor to provide a Loan Estimate. (Comment 2(a)(3)-1.ii). The fact that a consumer requests a pre-approval or pre-qualification will not change the creditor's obligation to provide a Loan Estimate.
 
 
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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