CFPB Releases Spanish Version of TILA-RESPA Form Guide

July 30, 2015

The Consumer Financial Protection Bureau released the Spanish version of “Your Home Loan Toolkit,” intended to help consumers understand the new Loan Estimate and Closing Disclosure forms that go into effect Oct. 3. Creditors must distribute the toolkit to mortgage applicants as part of the loan application process.

The CFPB said the toolkit is designed to replace the Settlement Cost Booklet when the TILA-RESPA Integrated Disclosures go into effect.

ALTA said the new consumer toolkit is a good resource and provides valuable information for consumers in an understandable manner, but continues to misinform consumers by calling owner’s title insurance “optional.”

In the toolkit, the CFPB tells consumers that most lenders require a lender’s title insurance policy. The bureau goes on to say “You may want to buy an Owner’s Title Insurance policy, which protects your financial investment in the home. The Loan Estimate you receive lists the Owner’s Title Insurance policy as optional if your lender does not require the policy.”

“The bureau should not discourage any homeowner from purchasing an owner’s title insurance policy that financially protects one of the largest investments of their lives,” said Michelle Korsmo, ALTA’s chief executive officer. “The CFPB should provide an accurate description of the peace of mind an owner’s title insurance policy provides and allow the homebuyer to make their own decision about purchasing this protection for their home.”

The toolkit also attempts to explain to homebuyers that they may receive a final list of fees at the closing table that is different from the fees included on the Loan Estimate and Closing Disclosure.

According to the CFPB, “Depending on the state where you are buying your home, your title insurance company may give you an itemized list of fees at closing. This itemized list may be required under state law and may be different from what you see on your Loan Estimate or Closing Disclosure. That does not mean you are being charged more. If you add up all the title-related costs your title insurance company gives you, it should match the totals of all the title-related costs you see on your Loan Estimate or Closing Disclosure. When comparing costs for title insurance, make sure to compare the bottom line total.”

In nearly half of the United States, consumers will pay for title insurance rates that are different than how the CFPB requires ALTA members to inaccurately disclose these fees on the new forms. ALTA and its members have requested that the bureau to correct the forms and the accompanying language in the new toolkit, before the Aug. 1 implementation date.

Additionally, ALTA suggested that the CFPB include information in the toolkit about the additional costs of owning a home, such as utility fees.

Contact ALTA at 202-296-3671 or