On December 16, 2022, the CFPB announced by publishing through the Federal Register the availability of an updated consumer publication, “What You Should Know about Home Equity Lines of Credit,” also known as the HELOC booklet, required by the Truth in Lending Act (TILA), as implemented by Regulation Z. According to the CFPB’s notice, the version of the HELOC booklet is updated to align with the Bureau's educational efforts, to be more concise, and to improve readability and usability.
The CFPB noted that the new features of the booklet include clear instructions on how consumers can use the pamphlet to explore their options, and a comparison table with examples of loans that utilize home equity and other sources of financing consumers might consider, including closed-end credit. The booklet also provides tables to compare three estimates to encourage consumers to understand the terms of their HELOC and to shop for the most advantageous offer. The CFPB also added that 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,” other consumer disclosures that the Bureau is responsible for producing.
The notice can be found here.