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On November 20, 2013 our world as Real Estate professionals, Title Agents and Mortgage Brokers understood it completely changed….The Consumer Finance Protection Bureau or (CFPB) published over 1,000 pages which constitute the final rule relative to certain disclosures consumers closing on a loan and consumers applying for loans shall receive.  The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) directs the Bureau to publish rules and forms that combine certain disclosures that consumers receive under the Truth in Lending Act and the Real Estate Settlement Procedures Act.  These forms which we all have known as the HUD-1 or settlement statement and the “TIL” or Truth in Lending Disclosure are being integrated into a new set of disclosures. The proposed the RESPA-TILA Integrated Disclosure forms called the Closing Disclosure Form and the Loan Estimate Form can be found at page number 1483 at http://files.consumerfinance.gov/f/201311_cfpb_final-rule_integrated-mortgage-disclosures.pdf. (page 1474 – 1600)

The final rule requires that the Loan Estimate be provided to consumers no later than three business days after receipt of the consumer’s application, to replace the early TILA disclosure and RESPA GFE, and that the Closing Disclosure be received by consumers at least three business days prior to consummation, to replace the final TILA disclosure and RESPA settlement statement.

The integrated disclosure provisions of the final rule do not apply to reverse mortgages and HELOCs, which are within the statutory scope of TILA and RESPA, because those transactions are fundamentally different from other types of mortgage credit since they do not amortize in the same way as closed-end, forward mortgage loans.  The rule is effective August 1, 2015.

For more information visit the government website which provides a summary of the CFPB changes.

http://files.consumerfinance.gov/f/201207_cfpb_detailed-summary_proposed-rule-to-improve-mortgage-disclosure.pdf