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 30, 2015
CFPB Releases Spanish Version of TILA-RESPA Form Guide
The Consumer Financial Protection Bureau released the Spanish version of “Your Home Loan Toolkit,” intended to help consumers understand the new Loan Estimate and Closing Disclosure forms that go into effect Oct. 3. The CFPB said the toolkit is designed to replace the Settlement Cost Booklet when the TILA-RESPA Integrated Disclosures go into effect.
House Committee Passes ALTA-supported Bill to Delay TRID Enforcement
Scotsman Guide | July 29, 2015
The House Financial Services Committee on Wednesday approved the Homebuyers Assistance Act. Sponsored by Reps. French Hill (R-Ark.) and Brad Sherman (D-Calif.), H.R. 3192 would delay the CFPB's ability to enforce violations of the TILA-RESPA Integrated Disclosures rule until Feb. 1, 2016, for companies making a good-faith effort to comply.
July 23, 2015
Is Owner’s Title Insurance Subject 10 Percent Tolerance? Owner’s title insurance is not a charge that is assigned to a particular tolerance category. Therefore, the applicable tolerance category depends on other factors, including whether the creditor requires the insurance and, if so, whether the consumer may shop for the provider of the insurance.
FHA to Allow Changes to Settlement Certification Due to TRID The Federal Housing Administration addressed changes settlement agents can make to the new settlement certification, which replaces the current addendum to the HUD-1, in a new FAQ document to its Single Family Housing Policy Handbook. The FHA's new handbook goes into effect Sept. 14, 2015.
Download ALTA's Model Settlement Statements to Use for TRID ALTA has developed four model Settlement Statements for title insurance and settlement companies to use in order to itemize all the fees and charges involved in the transaction once the CFPB's TILA-RESPA Integrated Disclosures go into effect Aug. 1. Settlement statements are currently used in the marketplace in conjunction with the federal HUD-1. The model Settlement Statements are not meant to replace the Consumer Financial Protection Bureau's Closing Disclosure. Bank of America said it encourages settlement agents to use ALTA's model Settlement Statements or similar state-specific forms when needed to supplement the Closing Disclosure.
July 22, 2015
ALTA to Host TRID Townhall on Facebook TRID Townhall | Facebook | 11 a.m. ET, July 28 ALTA will host a TRID Townhall on its Facebook page beginning at 11 a.m. ET on Tuesday, July 28, to share what industry participants should be doing now to prepare for the implementation of the TILA-RESPA Integrated Disclosures rule. Read on for details.
July 16, 2015
Using Technology to Expedite the Homebuying and Refinance Process
As lenders focus more on compliance and prepare their operations for the new TILA-RESPA Integrated Disclosures, it more important than ever for title and settlement agents to adjust their processes and procedures maintain systems that are compliant with the new regulation and offers the lender the peace of mind that their business is in good hands. The first companies to do this will be the ones that dominate the market for years to come. Read on for advice on how agents of all size can use technology to position their company for success.
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