The closing process will significantly change when the Consumer Financial Protection Bureau's fine rule for integrated mortgage disclosures goes into effect. The rule integrates forms required under the Truth-in-Lending Act (TILA) and Real Estate Settlement and Procedures Act (RESPA). A Loan Estimate will replace the current Good Faith Estimate and early TIL disclosure, while a Closing Disclosure will replace the HUD-1 and final TIL disclosure.
The CFPB announced a proposal to push back implementation until Oct. 3, 2015.
ALTA's Land Title Institute has created a training DVD to help you prepare for the disclosures. The DVD includes six modules that will help you understand the disclosures, including an introduction, what led to the development of the new disclosures, a step-by-step explanation of the Loan Estimate and Closing Disclosure, a discussion on how business processes will change, walk through how business relationships will change and how data will be shared, and additional resources and next steps.
A customizable model presentation also is available to guide discussions with your customers.
Purchase a recording of the TILA-RESPA Integrated Forum held in Dallas. The more than seven hours of discussion provides the latest interpretations and rules on the TILA-RESPA integration from the CFPB, addresses implications for closing/settlement, provides information on completing the Loan Estimate and Closing Disclosure, highlights how technology can be used to collaborate and solve compliance issues and explains how the entire real estate transaction will be changed.
Additional Documents and Resources
ALTA Settlement Statement
ALTA developed standardized ALTA Settlement Statements for title insurance and settlement companies to use to itemize all the fees and charges that both the homebuyer and seller must pay during the settlement process of a housing transaction. Four versions of the ALTA Settlement Statement are available. Download here.
Freddie Mac and Fannie Mae have released a common industry dataset, called the Uniform Closing Dataset, which leverages and maps to Mortgage Industry Standards Maintenance Organization (MISMO) data standards, to support implementation of the TILA-RESPA Closing Disclosure form.
If you want to report a possible violation of the Real Estate Settlement and Procedures Act (RESPA), email email@example.com. Include any evidence and contact information so that investigators may contact you. To the extent consistent with law enforcement needs, the Bureau will not disclose your identity and will maintain confidentiality as permitted by federal laws.
News on the Consumer Financial Protection Bureau
July 21, 2016
Putting Housing Finance On The Agenda Globe St. | July 21, 2016 That’s one goal of the National Multifamily Housing Council as it stages events at both the Republican and Democratic conventions.
July 21, 2016
D.C. Decision, Expected in Fall, Could Reverse CFPB's Actions, Change Structure Legal Newsline | July 20, 2016 A highly anticipated decision from the Washington, D.C., federal appellate court in a dispute between the Consumer Financial Protection Bureau and a New Jersey mortgage company may not only affect that particular industry, but also significantly impact the actions of the federal agency, attorneys say.
July 21, 2016
Freddie Mac Must Face Revived Lawsuit Over Subprime Exposure Reuters | July 20, 2016 A federal appeals court on Wednesday revived Ohio's lawsuit accusing Freddie Mac of defrauding the state's $87.3 billion public pension fund by hiding its exposure to subprime and other risky mortgages prior to the 2007-09 financial crisis.
Cordray: Fixing Title Premium Disclosure Improbable Responding to a letter from 74 members of Congress, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray indicated the bureau will not address the portion of the TRID rule that requires consumers to receive incorrect fees for title insurance premiums on their mortgage disclosures. Read on to learn what you can do to help convince the bureau that its method for disclosing title premiums is faulty and leads to confusion.
July 19, 2016
Survey: Voters Want More, Not Less, Financial Regulation DS News | July 18, 2016 In the midst of a heated debate in Congress where Republicans are trying to push their alternative to the Dodd-Frank Act, the Financial CHOICE Act, and Democrats are fiercely resisting the proposed change, a poll showed bi-partisan support for greater financial accountability and tougher regulation.
Adapting to TRID National Mortgage Professional Magazine | July 14, 2016 TRID: That little four-letter acronym was on the tip of every industry professional’s tongue in 2015.
July 14, 2016
Lessons from CFPB’s Mortgage Servicing ‘Special Edition’ Report In June, the Consumer Financial Protection Bureau released a "special edition" of its Supervisory Highlights focused on examinations of mortgage servicers between January 2014 and April 2016. In addition, the bureau released an updated mortgage servicing exam manual “to spur industry in its general compliance with CFPB rules.” The bureau's approach to mortgage servicing exams may be instructive for TRID compliance.
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