First look: New TILA-RESPA compliance guide
WASHINGTON – April 8, 2014 – Starting Aug. 1, 2015, the mortgage disclosure forms buyers receive will be easier to read and understand. It will also be easier for buyers to compare a loan and terms from two competing banks.
To accomplish that, the federal Consumer Financial Protection Bureau (CFPB) created a new Integrated Disclosure Rule, which consolidates the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).
Under the new law, the first disclosure must be given to buyers within three days of submitting their mortgage application. The goal is to fully explain a loan's term and the associated risks.
Buyers must also receive a second disclosure no later than three days before closing. The second pre-closing disclosure will outline all the transaction costs.
The TILA-RESPA Integrated Disclosure Rule – Small entity compliance guide includes samples of the new disclosures along with extensive explanations. It can be downloaded as a PDF through CFPB's website.
© 2014 Florida Realtors®