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 firstname.lastname@example.org. 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 2, 2015
GSEs Announce UCD Delivery Timeline and Collection Solution
Fannie Mae and Freddie Mac reported that lenders may begin delivering and testing the Uniform Closing Dataset XML file with the GSEs in fourth quarter of 2016. Delivery of the UCD for all loans acquired by Fannie Mae or Freddie Mac will be required in the second quarter of 2017. This is important for settlement agents that expect to continue doing business with lenders that sell their loans to the GSEs.
July 2, 2015
USAA to use Closing Insight for TRID USAA, a Texas-based Fortune 500 provider of diversified financial services, has signed an agreement to implement Black Knight Financial Service’s Closing Insight, a suite of Web-based solutions designed to help lenders address the CFPB’s TILA-RESPA Integrated Disclosure rule.
July 2, 2015
TRID Ready? 5 Things to Do Now
While an “administrative error” by the CFPB has delayed implementation of the TILA-RESPA Integrated Disclosures rule until Oct. 3, it’s important for companies to remain focused on getting prepared. Read on for the Top 5 compliance tips for settlement agents, Realtors and lenders.
Black Knight Releases TRID-Compliant LOS Upgrade
Black Knight Financial Services Inc. latest version of Empower, the company's loan origination system (LOS) for retail and wholesale lending, includes the core functionality required for lenders to support the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures rule.
CFPB Puts Consumer Complaints Online
CBS News | June 25, 2015 More than 7,700 consumer complaints about debt collectors, mortgage companies and credit card issuers were made public on Thursday by the Consumer Financial Protection Bureau. The move is aimed at giving consumers a window into issues others have experienced with financial services companies. Earlier this year, ALTA encouraged the bureau to modify the type of information that is collected from companies for the consumer complaint database. Resolving consumer complaints is the seventh pillar of ALTA’s “Title Insurance and Settlement Company Best Practices,” which says a process for receiving and addressing consumer complaints helps ensure reported instances of poor service or non-compliance do not go undiscovered.
June 25, 2015
CFPB Proposes Oct.3 Effective Date for TRID
The Consumer Financial Protection Bureau (CFPB) on June 24 issued a proposed amendment to delay implementation of the TILA-RESPA Integrated Disclosures rule until Saturday, Oct. 3. In its proposal outlining the new deadline, the bureau indicated that in recent weeks it learned delays in the delivery of system updates have left creditors and others with limited time to fully test all of their systems. Additionally, the CFPB said that scheduling the effective date on a Saturday “may allow for smoother implementation by affording industry time over the weekend to launch new systems configurations and to test systems."
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