New rules in play and more from Chicago Title

Dawn Hunter "Be The Change...Go Green with Chicago Title".... Phone: 408.973.1900 Email: HunterD@CTT.com Web: http://www.ChicagoSaratoga.com

Chicago Title

 

November 20, 2013 - The CFPB Final Rule is in. The final rule applies to transactions for which the creditor or mortgage broker receives an application on or after August 1, 2015. Email not displaying correctly? View it in your browser.

CFPB Updates Final Rule Released on November 20, 2013

The Final Rule On November 20, 2013, the Consumer Financial Protection Bureau (CFPB) published its final rule concerning the creation of Integrated Mortgage Disclosures, which combine the disclosures consumers receive under the Truth-in-Lending Act (TILA) and the Real Estate Settlement procedures Act (RESPA). The final rule includes new forms that will be used on virtually every transaction involving a mortgage loan originated and closed after August 1st , 2015. The new rules are 1,888 pages long and we are thoroughly reviewing to discover the effects they will have on our work as settlement agents and title insurers. A copy of the entire rule can be found at here http://www.consumerfinance.gov/regulations/integrated-mortgage-disclosures-under-the-real-estate-settlement-procedures-act-regulation-x-and-the-truth-in-lending-act-regulation-z/ The next step on our agenda is developing an implementation support effort. Chicago Title is already working on this. Look for information soon that helps industry understand how to comply with the new rules, what they need to do to prepare, and more.

OUR COMMITMENT In response to the changes CHICAGO TITLE is working closely with our Corporate Information Technology team to re-tool our escrow production systems to comply with the new rules; generate the Closing Disclosure; send/receive machine readable data to and from loan originators. We are committed to cover all aspects of requirements in the coming months. GET FAMILIAR  In the meantime, make yourself familiar with the new Loan Estimate and Closing Disclosure forms by viewing or printing them.  These new forms will replace the TILA Disclosure, Good Faith Estimate (GFE) and HUD-1 Settlement Statement on nearly every residential sale or refinance after August 1st , 2015.  The final versions of both forms can be downloaded here: THE LOAN ESTIMATE; THE CLOSING DISCLOSURE   NEED INFORMATION? In conclusion, although the changes are significant keep in mind ALL settlement agents are impacted by the new rules and forms. Should you have any questions regarding the CFPB's Final Rule, please visit the Consumer Financial Protection Bureau's website (click here) for detailed information.

Why the Rule? For more than 30 years, Federal law has required lenders to provide two different disclosure forms to consumers applying for a mortgage. The law also has generally required two different forms at or shortly before closing on the loan. Two different Federal agencies developed these forms separately, under two Federal statutes: the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act of 1974 (RESPA). The information on these forms is overlapping and the language is inconsistent. Not surprisingly, consumers often find the forms confusing. It is also not surprising that lenders and settlement agents find the forms burdensome to provide and explain. On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) was signed into law. Under the law, a new federal regulator was created – the Consumer Financial Protection Bureau (CFPB). The CFPB is an independent bureau housed in the Federal Reserve charged with regulating a wide range of consumer financial products and services including credit cards, payday loans, reloadable gift cards, mortgage servicing and mortgage origination. Under Dodd-Frank, the CFPB is mandated to propose regulations integrating the consumer disclosures required under RESPA and the Truth-in-Lending Act (TILA). This mandate is what led to the proposed rule released on July 9, 2012. Copyright © 2013 Chicago Title Company. All rights reserved.