Now that it’s spring, summer is well on its way. With August 1, 2015 being the effective date for the implementation of the Consumer Finance Protection Bureau’s new TILA-RESPA regulations, it’s essential for real estate professionals to commit to take the necessary steps to remain compliant.
Champion Title wants to educate our Realtors, loan officers and homebuyers on the changes regarding TILA-RESPA. Below is some information you need to know before August 1, 2015.
Defining the TILA-RESPA Rule
In short, it combines four existing disclosures required by TILA and RESPA into two forms, a Loan Estimate (LE) and Closing Disclosure (CD). The former must be placed in the mail no later than the third business day after receiving a consumer’s application, while the latter must be given to the consumer at minimum, three days prior to consummation (date of closing).
Transactions Under the TILA-RESPA Rule
Closed-end consumer credit transactions secured by real property are covered by this rule. However, this rule does not apply to HELOCs, reverse mortgages or chattel-dwelling loans.
TILA VS. RESPA
There are certain types of loans that are subject to TILA but not RESPA, including loans that are construction-only and loans secured by vacant land.
August 1, 2015 is the day the TILA-RESPA rule takes effect. As the applications received prior to this date are completed, removed or cancelled, the use of the GFE, HUD-1, and Truth-in-Lending forms will become obsolete for most mortgage loans.
Visit cfpb.gov for more information on the TILA-RESPA rule. The professionals at Champion Title are knowledgeable of the changes and are committed to keeping you informed. We make it easy to access the aid you need for your clients. As a Realtor, you deserve a partner you can trust. Call us today at any of our convenient locations listed here.