TILA-RESPA Highlights

So Many Questions – So Many Resources

August 2015 deadline for implementing the new TILA-RESPA is nearing. Chatter is rising. Are you ready?

 

 

The more Lenders and Realtors I talk to lately – the more I see people are in a frenzy over the new TILA-RESPA and its upcoming effective date (August 2015). So, I thought I would share with our readers a few more highlights – to make sure you have your hats on right and are prepared. It is of note that the TILA-RESPA rule does not apply to HELOCs, reverse mortgages or mortgages secured by a mobile home or by a dwelling that is not attached to real property (ie land). It does apply to most closed-end consumer credit transactions.

 

1) The Good Faith Estimate (GFE) and the initial Truth-in-Lending disclosure have been combined into a new form, the Loan Estimate. This form is designed to provide disclosures that will be helpful to consumers in understanding aspects, costs and risks of the mortgage loans. This is required to be provided no later than 3 business days after the consumer submits the loan application.

2) The HUD-1 and final Truth-in-Lending disclosure have been combined into yet another new form, the Closing Disclosure. This form is designed to provide disclosures that will help consumers understand all the costs of the transaction This form must be given to the consumer at least 3 business days before consummation of the loan.

 

CFPB’s  Loan Estimate Form Example and Closing Disclosure Form Example

Generally, these forms require the disclosure of categories of information that vary due to the type of loan, payment schedule, terms of transactions, fees charged, etc. These can’t be shown on a single example, but the CFPB does recommend looking at the examples provided above for reference.

 

This is just an incredibly short overview of what to expect. Check in soon as AppraisalPro goes in-depth on TILA-RESPA and Electronic Delivery, Rate Lock, and the six pieces of TRID application information (especially how it applies for purposes of HMDA/Reg C)

 

Materials You NEED to check out:

CFPBs:

Guide To Forms

Disclosure Timeline

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