CFPB Announces New Lending Rules Set for Oct. 3

Mortgage application text on blackboard with 3d houseThe Consumer Financial Protection Bureau (CFPB) announced today that it will be instituting new mortgage lending rules effective Oct. 3. The implementation date was originally scheduled for Aug. 1 and then pushed back to Oct. 1, before being delayed an additional 48 hours due to late paperwork filings.

What does this mean for home buyers, home builders and lenders?

On Oct. 3, the Good Faith Estimate, the Truth in Lending and HUD-1 Settlement Statements will be replaced by the CFPB’s new integrated disclosure forms, the “Loan Estimate” and the “Closing Disclosure.”

The biggest change is that the Closing Disclosure must be provided to the consumer a full three days prior to closing, and if there are certain changes during that 72-hour period, the closing could be delayed.

NAHB, Others Seek Hold Harmless Period

NAHB and other industry allies have urged CFPB Director Richard Cordray to provide a hold-harmless period for the initial months of the new process so that good-faith efforts to comply with the new disclosure regime do not expose lenders, settlement service providers and others to regulatory penalties and litigation.

The American Bankers Association reported Cordray stating that his agency would be sensitive to those who are “just trying to get it right” during his appearance before the Senate Banking Committee on July 15. “And so for the first period, which may last many months, the other agencies and ourselves as we work on this, if we see errors, we will point out what they are and how they should be corrected,” said Cordray. “We will not be looking to be punitive to people.”

While NAHB appreciates the tone taken by Cordray, NAHB is urging Congress to pass House and Senate bills H.R. 2213 and S. 1711, which would provide a temporary safe harbor from enforcement of the new lending rules through the end of the year.

To prepare those in the residential construction field for the impending rule changes, NAHB held a webinar June 24 to explain how to work proactively with lenders and settlement stakeholders to avoid unnecessary delays to home closings. A replay of this webinar will be posted on

Learn more about the new rules and download NAHB resources to help you comply.

For more information, email Steve Linville at NAHB or call him at 800-368-5242 x8597.


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