The closing process will significantly change when the Consumer Financial Protection Bureau's fine rule for integrated mortgage disclosures goes into effect Aug. 1, 2015. 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 has given an implementation deadline of August 1, 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 onhow 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
May 1, 2015
ALTA, MBA Partner for Sixth TRID Forum Due to high demand, ALTA and the MBA have collaborated to offer an additional TILA-RESPA Integrated Disclosure Forum to educate industry about the Consumer Financial Protection Bureaus new Loan Estimate and Closing Disclosure, which go into effect Aug. 1 for most closed-end consumer mortgages. The forum will be held June 23 in Denver.
CFPB to Hold Webinar on TRID Rule
The Consumer Financial Protection Bureau will hold its fifth and final webinar on its TILA-RESPA Integrated Disclosures (TRID) rule from 2:00-3:00 p.m. EDT, Tuesday, May 26, to answer some frequently asked questions.
April 30, 2015
eLynx Launches TRID Compliance Solution
eLynx has announced Expedite ID (Integrated Disclosures), a compliance solution that fulfills lenders’ requirements for complying with the CFPB's TILA-RESPA Integrated Disclosures rule that goes into effect Aug. 1.
April 30, 2015
ALTA Needs Real-life Examples of How Consumers are Affected by Failed, Delayed Closings Sharing real-life examples of how regulations work on Main Street also go a long way in helping members of Congress relate to a situation. In May, Evans will testify before Congress about the Consumer Financial Protection Bureau’s TILA-RESPA integrated disclosure (TRID). ALTA is asking members to provide real-life examples of why transactions did not close. Was something discovered during the walk-through? Were concessions made at the last minute? Was there an issue with the lender? We know you all have stories, so please share the details—the more specific the better.
ALTA Board Approves Model Settlement Statements The ALTA Board of Governors approved recommendations to adopt four new model ALTA Settlement Statements for title insurance and settlement companies to use in order to itemize all the fees and charges involved in the transaction. Settlement statements are currently used in the marketplace in conjunction with the federal HUD-1. The ALTA Settlement Statements are not meant to replace the Consumer Financial Protection Bureau's Closing Disclosure, which goes into effect on Aug. 1, 2015.
April 23, 2015
SunTrust Shares TRID Plans; Requires ALTA Best Practice Self Assessment by July 1 While SunTrust will handle production and delivery of the Closing Disclosure to the homebuyer, title and settlement agents will need to provide complete and accurate fees up to two weeks prior to the scheduled closing date. In addition, settlement service providers must complete an ALTA Best Practice Self Assessment by July 1 to remain eligible to close loans for SunTrust.
April 23, 2015
Tolerances with the TILA-RESPA Integrated Disclosures
Similar to existing law, the Consumer Financial Protection Bureau’s final TILA-RESPA rule restricts the circumstances in which consumers can be required to pay more for settlement services than the amount stated on their Loan Estimate. Read on to learn more about tolerances under the new rule and check out a chart that outlines which fees can and can't change.
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