Timing of Disclosures

I have a loan officer who does a lot of loans associated with USDA. On occasion she will take an application for USDA and pull a credit bureau to determine what type of program best suits the customer. Often, the info will be sent to USDA and the customer will meet with them before ultimately deciding what course of action to take. I know reg B kicks in when we take the app, but are we safe in not doing TILA and RESPA disclosures at this time, since we don't know what loan product will be used?

The answer to your question lies in what triggers each of these regulations. Regulation B clicks into place when you start advertising credit and/or talking with a consumer who wants to become a customer. This is because the regulation attempts to prohibit illegal prescreening and discouragement.

FCRA requires you to have a legitimate business purpose before pulling a credit bureau. The purpose test is met if you have someone who wants credit and advice on the programs most apprrpriate for their qualifications.

RESPA and TIL are triggered much later in the process -- when you have something tangible (like a property and a loan amount) to work with. You need to know what kind of program (fixed rate or ARMs will trigger different early disclosures) and that you in fact are dealing with an application for a mortgage on a dwelling.

That's the long answer. The short answer to your question is "yes."