Q: Can creditors provide estimates of costs and terms to consumers before the Loan Estimate is provided?
A: The TILA-RESPA Rule does not prohibit a creditor or other person from providing a consumer with estimated terms or costs prior to the consumer receiving the Loan Estimate.
However, if a person (such as a creditor or broker) provides a consumer with a written estimate of terms or costs specific to that consumer before the consumer receives the Loan Estimate, it must clearly and conspicuously state at the top of the front of the first page of the written estimate “Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.” (§ 1026.19(e)(2)(ii); Comment 19(e)(2)(ii)-1)
There are other restrictions on the form of this statement to assure it is not confused with the Loan Estimate:
The Bureau has provided a model of the required statement in form H-26 of appendix H to Regulation Z.