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For more than 30 years, federal law has required all lenders to

provide two disclosure forms to consumers when they apply for

a mortgage and two additional short forms before they close on

the home loan. These forms were developed by different federal

agencies under the Truth in Lending Act (TILA) and the Real

Estate Settlement Procedures Act (RESPA).

To help simplify matters and avoid the confusing situations

consumers have often faced when purchasing or refinancing a

home in the past, the Dodd-Frank Act provided for the creation

of the Consumer Financial Protection Bureau (CFPB) and charged

the bureau with integrating the mortgage loan disclosures under

the TILA and RESPA.

In Plain English, Please

On November 20, 2013 the CFPB announced the

completion of their new integrated mortgage disclosure

forms along with their regulations (RESPA Regulation

X and TILA Regulation Z) for the proper completion and

timely delivery to the consumer. These regulations are

known as “The Rule”.

Any residential loan originated after October 3, 2015

will be subject to the new rules and forms set forth by

the CFPB*. The Rule replaces the Good Faith Estimate

(GFE) and early TILA form with the new Loan Estimate.

It also replaces the HUD-1 Settlement Statement and

final TILA form with the new Closing Disclosure. The

introduction of the new disclosure forms require changes

to the systems that produce the closing forms. Fidelity

National Title Group is already well underway in preparing

our production systems to provide the new required fee

quotes, prepare the new closing disclosure forms, and

track the delivery and waiting periods required by the new

regulations.

CFPB Primary Goals:

*Loans in progress (applications submitted prior to October 3, 2015)

will use current TILA and RESPA forms.

Easier-to-use disclosure forms

Improved consumer understanding

Better comparison shopping

Avoid costly surprises at the closing table

What is CFPB?

After the 2008 financial meltdown, Congress established the Consumer Financial Protection Bureau (CFPB). It was created

in 2011 after the Dodd-Frank Act was placed into effect. The Consumer Financial Protection Bureau provides information to

consumers to understand financial agreements in which they enter. The CFPB strives to educate the purchaser on fair practices,

enforce consumer laws, and analyze financial markets.

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© Ticor Title Company

WHAT IS CONSUMER FINANCIAL PROTECTION BUREAU? (CFPB)

Know Before You Close

Simple answers about the CFPB

and how the new rules will change

real estate transactions.