On November 20, 2013, the CFPB published the final rules required by the Dodd Frank Act to provide for integrated mortgage disclosures under the Real Estate Settlement Procedures Act (“RESPA”) and the Truth in Lending Act (“TILA”). The new rules provide for two new forms of disclosure to replace the existing RESPA Good Faith Estimate and HUD-1 disclosures and the corresponding early and final TILA disclosures.
The first new form (the Loan Estimate) will provide disclosures to help consumers understand the key features, costs, and risks of the mortgage for which they are applying, and will replace the RESPA Good Faith Estimate and the “early” TILA mortgage disclosure form. This form will be provided to consumers within three business days after they submit a loan application. The second form (the Closing Disclosure) combines the RESPA HUD-1 and final TILA disclosures regarding all of the costs of the loan transaction. The Closing Disclosure will be provided to consumers three business days before they close on the loan.
The rules will take effect on August 1, 2015. Watch this BankBryanCave.com site for more details over the coming weeks and months. In the meantime, the CFPB’s publication, exceeding 1800 pages, is available on the CFPB’s website.