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
June 26, 2015
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."
June 25, 2015
DocMagic Begins Testing SmartCLOSE Program for TRID Preparation DocMagic Inc. announced that a group of clients have begun to test the features and functionality available within its new collaborative closing portal, SmartCLOSE, which offers a secure, centralized online environment for lenders, settlement providers and other associates to share, validate, audit, track and collaborate on documents, data and fees.
CFPB Changes TRID Effective Date — Again HousingWire | June 24, 2015 The Consumer Financial Protection Bureau's new mortgage disclosure rules will now take effect Saturday, Oct. 3, two days later than the previously rescheduled Oct. 1 deadline.
June 25, 2015
TILA-RESPA Integrated Disclosure Training Tools Available from ALTA ALTA has produced a TILA-RESPA Integrated Disclosure training DVD to help the industry prepare for the implementation of the new forms. The two and a half hour training DVD addresses key components of the 1,888 pages of the CFPB Rule, related regulatory action impacting work flow changes, how to collaborate with customers to prepare for implementation, and provides a detailed review of the new Loan Estimate and Closing Disclosure. Additionally, ALTA has developed customizable Lunch and Learn presentations to guide implementation discussions with real estate customers.
CUNA Urges CFPB to Clarify TILA-RESPA
Credit Union Times | June 22, 2015 In a letter to the CFPB on Monday, CUNA requested the federal bureau to clarify a discrepancy and exempt credit unions that make five or fewer mortgages in a calendar year from the Know Before You Owe rule.
June 25, 2015
How Encryption Can Help with CFPB Compliance To maintain CFPB compliance without violating consumer privacy or causing a breach of NPI, it’s crucial that title agents provide proper training with everyone on staff so that, say, a Closing Disclosure doesn’t end up on the wrong person’s desk — or in their inbox.
June 25, 2015
Webinar Recording: Learn About Solutions to Effectively Share Data for TRID Because the CFPB’s TILA-RESPA Integrated Disclosures (TRID) pull information from two separate systems, electronic collaboration between title professionals and lenders will be paramount to complete the new Loan Estimate and Closing Disclosure. Learn how loan-centric information stored in lenders' loan origination systems and property-centric data found in title/settlement agents' systems can be shared efficiently by listening to a recording of ALTA’s webinar "The Need for Electronic Collaboration: Solutions to Effectively Share Data for TILA-RESPA Integrated Disclosures. Operations and IT experts discuss solutions to technology challenges so you can effectively exchange data during different points of the transaction, get deals closed and ensure regulatory compliance. The webinar discusses providing accurate fees to the lender for the Loan Estimate, needed collaboration to produce the Closing Disclosure, security and data privacy issues, the necessary integration support and what to expect after Aug. 1.
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