Integrated Disclosure Rule: TILA & RESPA Updates
The Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) promise to change how banks present disclosure materials on August 1, 2015. Prepare your loan officers and bankers with the following sample forms, FAQ sheets, webinars and other resources designed specifically to help bank officials meet compliancy by the August 1 deadline. The new integrated disclosure rule may be unlike anything seen in the financial industry before, but these resources will help institutions, both large and small, understand their obligations and the industry’s new processes.
Use these resources to develop an implementation plan for your institution. Educate staff members concerning the new technical forms to experience a smooth conversion. Failure to comply with the new integrated regulation can result in soiled reputation and serious penalties, financial and otherwise.
Two new disclosures have been created from four existing documents. A “Loan Estimate” has been created from the early TILA disclosure and good faith estimate. Combining the HUD-1 settlement statement and TILA disclosure has created a “Closing Disclosure.” Documents have been simplified and diversified per loan type. Transaction tables showing consumers their first five years of principal and interest payments have also been added to the Loan Estimate. New timing requirements take effect on August 1, which loan officers will want to familiarize themselves with in order to ensure compliancy.
Freely use the following materials and email us with any suggestions or comments you may have in the process of learning the new TILA-RESPA changes.
Here is a list of resources to help you comply from the Consumer Financial Protection Bureau’s website.
I am very excited about the potential benefits the new Rule will afford potential homebuyers, and am ready to walk my clients through these big changes. If your mortgage officer at the big bank is having trouble with the integrated rule then call me for my proven abilities to adapt to new regulations and lead you through to closure. My mortgage operations create positive results for clients looking for a new move, and they’ll work even harder for you under the new TILA-RESPA Rule.