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.
News on the Consumer Financial Protection Bureau
June 30, 2016
Early Signs on Fintech from Consumer Financial Protection Bureau The National Law Review | June 30, 2016 There is no doubt that the regulation of financial technology (fintech) companies is on the rise. Fintech companies broadly mean companies that provide products, services and technology where traditional banking and financial services leave off and technology takes off.
June 29, 2016
Fitch Adds TRID Grading to RMBS Due Diligence Reviews National Mortgage News | June 29, 2016 Fitch Ratings has updated its new loan level due diligence residential mortgage-backed securities grading methodology to include compliance grading related to the TILA-RESPA integrated disclosure rules.
June 28, 2016
Hundreds of Lenders Still Haven't Used FHA Appraisal Portal National Mortgage News | June 28, 2016 The deadline has arrived for mandatory submissions to the Federal Housing Administration's Electronic Appraisal Delivery portal, but as many as one-third of lenders that originate FHA-insured mortgages have yet to use the new system.
How Former CFPB Official Handles Compliance Banking Exchange | June 24, 2016 “Anyone who’s gotten a mortgage knows how much white noise there is in the disclosure process,” says Steve Antonakes, senior vice-president and chief compliance officer at Massachusetts’ Eastern Bank. By the time the mortgage closes, the file has likely grown three inches thick, Antonakes says.
CFPB: Servicers are Using Failed Technology DS News | June 23, 2016 Some mortgage servicers have violated the Consumer Financial Protection Bureau (CFPB)’s new servicing rules by continuing to use failed technology that has harmed consumers, according to a special edition supervision report issued by CFPB on Wednesday.
June 23, 2016
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.
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