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 21, 2015
Senators Urge CFPB to Institute Grace Period for TRID
Two U.S. Senators have joined the growing chorus encouraging the Consumer Financial Protection Bureau to enact a hold-harmless period through the end of the year following the August 1 effective date of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures regulation.
May 21, 2015
TRID Requires Standardization of Fee Names on Loan Estimate, Closing Disclosure In addition to preparing for new timing requirements and tighter fee tolerances, settlement agents and lenders must develop standardized fee names or descriptions for the Loan Estimate and Closing Disclosure. Because the Consumer Financial Protection Bureau wants consumers to be able to compare fee estimates with what’s actually charged at consummation, the TILA-RESPA Integrated Disclosures rule requires fee terminology to be consistent between the two forms.
May 21, 2015
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.
May 20, 2015
CFPB Consumer Complaint Portal Not a 'Gotcha Game' Panel Says
From the CFPB’s perspective, a company has done its due diligence if it has provided a response to a consumer complaint with 15 days. Read on to learn how the bureau defines a complaint and why it believes complaints are useful in detecting market trends.
May 19, 2015
ALTA Federal Conference: CFPB Dominates Issues ALTA Will Take to the Hill
Title professionals attending ALTA's 2015 Federal Conference and Lobby Day will encourage members of Congress to support legislation that would enact a hold-harmless period following implementation of the TILA-RESPA Integrated Disclosures rule through the end of the year. In addition, attendees will tell members of Congress that the CFPB should amend its rule to allow the title and settlement industry to disclose the price of title insurance accurately to consumers. The TRID rule prohibits the accurate disclosure of fees for title insurance in 43 states.
May 14, 2015
Real Estate Industry Unites Asking for Hold-harmless Period for TRID
During a Congressional hearing today, ALTA President Diane Evans NTP and representatives from the National Association of Realtors, American Bankers Association and the Urban Institute all encouraged Congress to pass legislation that would implement a hold-harmless period following the Aug. 1 implementation of the TILA-RESPA Integrated Disclosures rule through 2015.
May 14, 2015
ALTA Develops TILA-RESPA Integrated Disclosure Training Tools ALTA has produced a TILA-RESPA Integrated Disclosure training DVD to help the industry prepare for the Aug. 1 implementation of new 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.
May 14, 2015
Download ALTA's Model Settlement Statements The ALTA Board of Governors approved recommendations to adopt four new 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 ALTA Settlement Statements are not meant to replace the Consumer Financial Protection Bureau's Closing Disclosure, which goes into effect on Aug. 1, 2015.
ALTA President to Make Second Appearance Before Congress
ALTA President Diane Evans NTP will testify before Congress for the second time within the past month. On Thursday, Evans will appear before the Housing and Insurance Subcommittee of the House Financial Services Committee during a hearing titled "TILA-RESPA Integrated Disclosure: Examining the Costs and Benefits of Changes to the Real Estate Settlement Process."
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