No CRS summary available for this bill.
This section establishes tolerances and procedures for mortgage loan estimates and closing disclosures under the Truth in Lending Act. It deems a good faith estimate provided if aggregate closing costs do not exceed the disclosed amount by more than $500 or 5 percent of third-party fees (excluding origination charges), resets the waiting period only for interest rate increases above 0.125 percentage points, loan product changes, or added prepayment penalties, allows consumers to waive the 3-day closing disclosure period, permits up to two revised estimates for non-material changes delivered at least 7 days before consummation, and shields creditors from liability for settlement agent errors when they exercise reasonable diligence and oversight. The Bureau must issue implementing rules within 180 days.
This section revises the accuracy standard for annual percentage rate disclosures under the Truth in Lending Act to permit a variance of no more than 0.125 percentage points from the actual rate. It also authorizes creditors to cure inaccuracies through post-consummation adjustments and restitution ensuring consumers pay no more over the life of the loan than at the disclosed rate.
This section shields creditors from liability under the Truth in Lending Act for violations arising from good-faith reliance on guidance issued by the Bureau of Consumer Financial Protection. It also prohibits civil penalties for a first-time violation unless the creditor fails to cure within 60 days after receiving written notice from a Federal or State regulator, defines a first-time violation as the initial notice within the preceding 36-month period (with a single pattern or practice counting as one violation), and preserves consumers’ rights to restitution and private remedies.