Your Home Loan Toolkit booklet guides borrowers through the home loan process by helping them in analyzing their borrowing needs, evaluating different loan options, and making a choice to obtain a loan that meet their needs. The toolkit guides the borrower in assessing their current situation in terms of affordability, credit, mortgage options, down payment, and other topics to help understand their borrowing needs. With this information, the toolkit helps compare different mortgage loan offers, choose a mortgage loan, and guide through the closing process. Finally, tips are provided on how to protect the homeownership and manage the mortgage loan.
The toolkit is developed by Consumer Finance Protection Bureau (CFPB) and was released on March 31, 2015. It replaces the Settlement Cost Booklet developed by Department of Housing and Urban Development (HUD).
The toolkit is designed to help you in understanding your current financial situation and in analyzing various loan options so that you can shop for a mortgage loan that meets your unique requirements. It contains worksheets, checklists, research tips, talking points, illustrations of key mortgage disclosures, and other tools to help you understand the mortgage process.
The lender is required to send you the toolkit within three business days from the date of application. However, if you are interested in reading the toolkit ahead of time, then you want to download it yourself from CFPB's website.
Regulation X - Real Estate Settlement Procedures Act (12 CFR 1024) requires you to provide the booklet to each person from whom you have received an application for a mortgage loan. The toolkit must be provided to the borrower by delivering it or placing it in mail not later than three business days after you have received a loan application. However, you are not obligated to provide the toolkit if you deny the loan application within the three business day period.
The toolkit replaces The Department of Housing and Urban Development’s (HUD) Settlement Cost Booklet. It incorporates the integrated RESPA and TILA disclosures that are effective from Oct 3, 2015.
The booklet is designed to comply with Regulation X (12 CFR 1024.6) and Regulation Z (12 CFR 1026.19(g)) and Real Estate Settlement Procedures Act (12 USC 2604). Regulation X implements Real Estate Settlement Procedures Act (RESPA) and Regulation Z implements Truth in Lending Act (TILA).
You can customize the toolkit by adding a logo on the cover page. However, you must ensure you meet the following requirements from CFPB:
CFPB has published an instructional booklet which contains the detailed instructions, licensing agreement, and restrictions that you must follow when adding the logo. The disclaimer is available in English and Spanish. The list below provides the links to the key resources.
RESPA requires CFPB to revise the toolkit every five years. Therefore, you should be expecting to replace the booklet every five years.
RESPA (12 USC 2604) requires CFPB to prepare, at least once every 5 years, a booklet to help consumers applying for federally related mortgage loans to understand the nature and costs of real estate settlement service. RESPA mandates specific content that must be included in the booklet. The Your Home Loan Toolkit is the booklet that CFPB has prepared in order to meet its obligations under RESPA.
Electronic versions of the toolkit can be downloaded from the CFPB website from this location. You may print the toolkit and provide to the borrowers. For your convenience, the list below provides the links to different versions of the toolkit.
Updated: Jul 21, 2017