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.
Title Agents Report Increase in Cost to Close Loans According to First American Financial’s latest Real Estate Sentiment Index, title agents reported an average increase of $184 per transaction. The report noted that the increases are not necessarily due to the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosure rule, but rather are attributed to various approaches to how lenders have implemented the rule.
Mortgage-document Deluge: Do the New Rules Help?
The Philadelphia Inquirer | June 19, 2016 For years, the Consumer Financial Protection Bureau worked to integrate the mortgage-loan disclosures required by the Truth in Lending Act and the Real Estate Settlement Procedures Act of 1974.
Jeb Hensarling: How We Can Hold Wall Street Accountable The Dallas Morning News | June 16, 2016 Nearly seven years after the Great Recession ended, the economy still isn’t working for millions of working Americans. Their paychecks remain stagnant; their savings have declined. They cannot get ahead and fear for the future of their families.
June 17, 2016
Who's Behind the Campaign Attacking CFPB Chief Cordray? American Banker | June 16, 2016 Richard Cordray, the director of the Consumer Financial Protection Bureau, is the target of a new TV ad campaign that alleges he is courting potential donors for a run as governor of Ohio by enacting a plan that would benefit trial lawyers.
June 16, 2016
Watchdog Finds Problems With CFPB’s Internal Controls DS News | June 16, 2016 The Consumer Financial Protection Bureau has had a challenging year between all the Republican efforts to change its structure and the opening arguments of the PHH Mortgage Trial in which the Bureau’s constitutionality was called into question by panel of three Republican judges.
June 15, 2016
Sizing Up the CFPB's Favorite Enforcement Targets
National Mortgage News | June 14, 2016 Mortgage lenders, debt collectors and credit card companies have borne the brunt of the Consumer Financial Protection Bureau's public enforcement actions over the past four years, yet banks have paid the most in penalties and restitution, according to a new study released by an agency insider.
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