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#1885890 - 01/13/14 04:42 PM Three New Consumer Booklets 01-13-2014
BLPage Offline
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Virginia
ADDRESSES: The revised consumer publications are available for download on the Bureaus Web site at
www.consumerfinance.gov/learnmore

and can also be found in the Catalog of U.S. Government Publications
http://catalog.gpo.gov

Mortgages
If you are getting a mortgage, read Shopping for Your Home Loan: Settlement Cost Booklet
If you are getting an adjustable rate mortgage, read the Consumer Handbook on Adjustable-Rate Mortgages (CHARM) Booklet
If you are getting a home equity line of credit, read the What You Should Know about Home Equity Lines of Credit (HELOC) Brochure

QUESTION: Since HELOC's are included in the definition of a 'federally related mortgage loan,' I can't interpret whether HELOC's receive the settlement cost booklet AND the HELOC brochure OR one or the other. The 'timing and delivery requirement' rule implies one or the other, but I can't find anything/interpret anything that mentions the brochure specifically. Advice would be appreciated. Thank you.

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HOEPA and Homeowner Counseling Rule
#1885900 - 01/13/14 04:51 PM Re: Three New Consumer Booklets 01-13-2014 BLPage
John Burnett Offline
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Regulation X, section 1024.6(a)(3):

(3) In the categories of transactions set forth at the end of this paragraph, the lender or mortgage broker does not have to provide the booklet to the borrower. Under the authority of section 19(a) of RESPA (12 U.S.C. 2617(a)), the Bureau may issue a revised or separate special information booklet that deals with these transactions, or the Bureau may choose to endorse the forms or booklets of other Federal agencies. In such an event, the requirements for delivery by lenders and the availability of the booklet or alternate materials for these transactions will be set forth in a Notice in the Federal Register. This paragraph shall apply to the following transactions:

(i) Refinancing transactions;

(ii) Closed-end loans, as defined in 12 CFR 1026.2(a)(10) of Regulation Z, when the lender takes a subordinate lien;

(iii) Reverse mortgages; and

(iv) Any other federally related mortgage loan whose purpose is not the purchase of a 1- to 4-family residential property.


Unless the HELOC is to be used as part of the purchase of a 1- to 4-family residential property, the Settlement Costs booklet isn't required. Under 1026.40(e), however, the HELOC brochure is required at time of application. If the HELOC is part of the purchase of a RESPA-covered property, I believe both brochures will be needed.

Last edited by John Burnett; 01/13/14 05:12 PM.
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#1885966 - 01/13/14 06:20 PM Re: Three New Consumer Booklets 01-13-2014 BLPage
JWills, CRCM Offline
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I just went to the link above-the booklets are there, however do you know of where we can get the normal sized booklets? If I print this out it is 8 1/2 x 11. Thanks.
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#1886137 - 01/13/14 09:40 PM Re: Three New Consumer Booklets 01-13-2014 BLPage
BLPage Offline
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John: Thank you for your advice. The preamble to Reg X's homeownership counseling list confused me because it constantly mentions the list and settlement costs booklet being provided to "ALL federally related mortgage loans" and that:

"Under RESPA and its implementing regulations, a federally related mortgage loan includes purchase-money mortgage loans, subordinate-lien mortgages, refinancings, closed-end home-equity mortgage loans, HELOCs, and reverse mortgages."

I see no mention of the exemptions you provided, so your clarificaion is appreciated.

JWills: To get the 'normal sized' booklets, they must be purchased by the gpo.gov website. If you download it, it will always be 8 1/2 x 11.

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#1886139 - 01/13/14 09:43 PM Re: Three New Consumer Booklets 01-13-2014 BLPage
JWills, CRCM Offline
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Originally Posted By: BLPage
John: Thank you for your advice. The preamble to Reg X's homeownership counseling list confused me because it constantly mentions the list and settlement costs booklet being provided to "ALL federally related mortgage loans" and that:

"Under RESPA and its implementing regulations, a federally related mortgage loan includes purchase-money mortgage loans, subordinate-lien mortgages, refinancings, closed-end home-equity mortgage loans, HELOCs, and reverse mortgages."

I see no mention of the exemptions you provided, so your clarificaion is appreciated.

JWills: To get the 'normal sized' booklets, they must be purchased by the gpo.gov website. If you download it, it will always be 8 1/2 x 11.


I went to the govt website, but they are the old booklets-I am assuming it will take a bit of time for them to get up to speed.
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#1886229 - 01/14/14 01:59 PM Re: Three New Consumer Booklets 01-13-2014 BLPage
John Burnett Offline
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Like the ads for next season's TV shows. By the time the series start, you're tired of hearing about them already.
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#1886250 - 01/14/14 02:33 PM Re: Three New Consumer Booklets 01-13-2014 BLPage
JWills, CRCM Offline
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Thanks for the humor John! Most days I feel if we don't laugh, we aren't going to make it.
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#1893418 - 02/04/14 05:48 PM Re: Three New Consumer Booklets 01-13-2014 BLPage
BSAguy Offline
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When do we have to start using the revised booklets? We have a supply of the old ones and don't want to have to get rid of them.

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#1893505 - 02/04/14 07:21 PM Re: Three New Consumer Booklets 01-13-2014 BSAguy
Ski Offline
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Those who provide these publications may, at their option, immediately begin using the revised HELOC Brochure, CHARM Booklet, or Settlement Cost Booklet, or suitable substitutes to comply with the requirements in Regulations X and Z. The Bureau understands, however, that some may wish to use their existing stock of publications. Therefore, those who provide these publications may use earlier versions of these publications until existing supplies are exhausted. When reprinting these publications, the most recent version should be used.

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#1894502 - 02/06/14 08:03 PM Re: Three New Consumer Booklets 01-13-2014 BLPage
DRAE Offline
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Along the lines of the settlement cost booklet, Is anyone aware if the booklet is allowed to be delivered to the borrower/consumer by providing a link to the website, rather than providing the actual booklet or booklet by PDF?

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#1894506 - 02/06/14 08:10 PM Re: Three New Consumer Booklets 01-13-2014 DRAE
Reads Regs Offline
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Since the settlement costs booklet is required by Reg. X, you will need to look at section 1024.3 regarding electronic delivery of disclosures. http://www.bankersonline.com/regs/12-1024/12-1024-003.html

Do a search of the threads for "demonstrable consent" and you'll get an idea of what you'll need to do.
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#1894518 - 02/06/14 08:22 PM Re: Three New Consumer Booklets 01-13-2014 BLPage
Kathleen O. Blanchard Offline

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But linking to the regulator's website could be chancy. You don't know when that will change.
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#1931303 - 06/11/14 01:29 PM Re: Three New Consumer Booklets 01-13-2014 BLPage
peerue1 Offline
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Do we have the option of printing the 8x11 for free, or do we have to order the very expensive booklets?

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#1931714 - 06/11/14 09:14 PM Re: Three New Consumer Booklets 01-13-2014 peerue1
Oursisnottoreasonwhy Offline
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They are printable PDF files. Set your printer options to booklet.

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#2147214 - 09/22/17 02:33 PM Re: Three New Consumer Booklets 01-13-2014 Oursisnottoreasonwhy
TeamComply Offline
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We do very few HELOCs and still have inventory of our old existing Federal Reserve Board "What You Should Know about Home Equity Lines of Credit" booklets. Are we still ok to be providing this older version of the booklet, opposed to the CFPB version issued in 2014? Thoughts?

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#2147219 - 09/22/17 02:41 PM Re: Three New Consumer Booklets 01-13-2014 BLPage
rlcarey Offline
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Let you be the judge:

Official Interpretation

40(e) Brochure

1. Substitutes. A brochure is a suitable substitute for the home equity brochure, “What You Should Know About Home Equity Lines of Credit,” (available on the Bureau's Web site) if it is, at a minimum, comparable to that brochure in substance and comprehensiveness. Creditors are permitted to provide more detailed information than is contained in that brochure.
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#2148402 - 10/03/17 02:19 PM Re: Three New Consumer Booklets 01-13-2014 BLPage
Bville Offline
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Does someone have a link for ordering the HELOC Brochures? I can find them on line in printable form, but I can't find a link any where to order hard copies.

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#2148406 - 10/03/17 02:34 PM Re: Three New Consumer Booklets 01-13-2014 BLPage
rlcarey Offline
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I don't think you can.
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