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.




