TILA-RESPA Compliance Guide is Now Out
The Consumer Financial Protection Bureau (CFPB) has just issued a compliance guide to go with the TILA-RESPA Integrated Disclosure Rule, governing disclosure forms for mortgage loans.
The Small Entity Compliance Guide is designed to assist “smaller lenders and other mortgage companies to understand and comply with the new mortgage disclosure rules”.
Adopting the new version of the forms was necessary because mortgage applicants frequently found the procedure confusing. They had to fill two different forms for two different agencies. The first one was mandated by the Truth in Lending Act (TILA), while the second one – by the Real Estate Settlement Procedures Act (RESPA). Now they have been merged into the TILA-RESPA forms.
The first form will educate mortgage applicants about the “key features, costs, and risks of the mortgage loan for which they are applying”. The second one will help them better understand “all of the costs of the transaction”.
Read the full article in the Housing Wire.