NEWS: On December 16, 2022, the Consumer Financial Protection Bureau (CFPB) announced the availability of an updated version of the “What you should know about Home Equity Lines of Credit” booklet. The updated version is dated August 2022 and replaces the January 2014 version of the booklet.
The CFPB advised that it “is updating the HELOC booklet so that it aligns with the Bureau’s educational efforts, to be more concise, and to improve readability and usability.” The CFPB notes that new features of the updated booklet include clear instructions on how consumers can use the booklet to explore their options, a comparison table with examples of loans that utilize home equity and other sources of financing a consumer might consider (including closed-end credit), and expanded tables for consumers to compare three estimates of HELOCs. The design of the HELOC booklet has a look and feel similar to ‘‘Your Home Loan Toolkit: A Step-By-Step Guide,’’ and the ‘‘Consumer Handbook on Adjustable-Rate Mortgages”.
The CFPB website has links to the print version, a web version and a link to order copies from the Government Printing Office:
- Download the print-ready version (English | Spanish)
- Download the web-enabled version (English | Spanish)
- Order printed copies from the U.S. Government Printing Office (English | Spanish)
The CFPB’s Notice does not include a date by which the revised booklet must be used. As in the past, credit unions may use existing inventory before making transition to the new version – “Creditors may, at their option, immediately begin using the revised HELOC brochure, or a suitable substitute, to comply with the requirements under 12 CFR 1026.40(e). The Bureau understands, however, that some may wish to use their existing stock of the HELOC brochure. Therefore, those who provide this publication may use earlier versions of the HELOC brochure until existing supplies are exhausted. When reprinting the HELOC brochure, the most recent version should be used.”
The League has updated ii Release No. B064, “R.E.A.P. & Home Equity Lines of Credit” to update hyperlinks to the revised brochure.