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.
Last Chance to Register for RESPA Webinar: Understanding Things of Value and Referrals Compliance Webinar Series | 1:00-2:00 p.m. ET, Wednesday, May 25
While the Real Estate Settlement Procedures Act (RESPA) has been around since 1974, its broad language makes compliance with the law an ever-changing process. Recent CFPB and state enforcement actions have changed the game when it comes to understanding RESPA’s core prohibition on kickbacks and unearned fees. Learn the basics of Sections 8(a) and (b) of RESPA from a leading expert as attorney Andy Arculin of the law firm Venable explains the difference between a referral fee and an unearned fee or kickback, and what compensation is permissible under the law. Attendees will walk away with a good analytical framework to help with compliance.
May 19, 2016
Industry Compliance: Understanding Regulator Interpretations and Trends in Enforcement Some have called compliance the “new black.” That may be partially correct, but complying with laws and regulations has never gone out of style. What has changed, though, is the lens through which regulators are using to interpret compliance. With the Consumer Financial Protection Bureau on the beat, regulators are laser-focused on the consumer experience. Read on to learn how the CFPB and other regulators are viewing compliance with the Real Estate Settlement Procedures Act, including violations for affiliated business arrangement disclosures, payment of referral fees and marketing service agreements.
May 19, 2016
Congressman Calls for Regulatory Transparency from the CFPB DS News | May 18, 2016 U.S. Rep. French Hill (R-Arkansas) said Monday that the Consumer Financial Protection Bureau (CFPB) needs to do a lot more to ensure the industry understand the new TRID-compliant ‘Know Before You Owe’ rules before they take effect. Specifically, Hill wants to make sure that the Bureau clears up confusing language regarding insurance fees in the mortgage process.
May 18, 2016
Is TRID Encouraging Smarter Homebuyers? National Mortgage Professional Magazine | May 17, 2016 According to the new Home Closing Survey conducted by the American Land Title Association (ALTA), 92 percent of surveyed homebuyers set aside time before their closings to review their mortgage documents.
More Homebuyers Reviewing Mortgage Documents Under TRID
HousingWire | May 16, 2016 “Title and settlement agents went to great lengths to prepare and train staff prior to implementation of the regulation,” said Michelle Korsmo, ALTA’s chief executive officer. “The hard work of these professionals paid off as 92% of surveyed homebuyers are taking time to review their mortgage documents before the closing,”
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