The new Loan Estimate and Closing Disclosure requirements – effective October 3rd, 2015 – will combine two existing disclosure regimes under TILA and RESPA and are designed to make mortgage disclosure easier for consumers to understand and use.
The full timeline of how the CFPB created the integrated Loan Estimate and Closing Disclosure forms, focusing on the Know Before You Owe: Mortgages project, is available online. It’s a look back at the effort to make mortgage disclosures simpler and more effective, with the input of the people who will actually use them.
You can view this timeline on the CFPB site using the link below.
Real Estate professionals should prepare themselves now for the new disclosure requirements being implemented by the Consumer Financial Protection Bureau later this year, and communication between all parties in the real estate transaction is essential in ensuring a smooth transition, according to speakers at the regulatory issues forum at the 2015 Realtors® Legislative Meetings & Trade Expo.
Any mortgage application submitted on or after October 3rd, 2015 will fall under the new CFPB mortgage disclosure rules.
Along with new forms the real estate industry will be faced with a new set of rules that have the potential to do two things. First, consumers of lending services will have an opportunity to review the disclosures in detail and have any questions answered prior to signing for the loan they are seeking. Second, the industry will have to adapt to new time frames associated with the disclosures being made and how those timelines will affect the closing of a transaction.
VanEd is offering a new course: Integrated Mortgage Disclosures: The 2015 TILA/RESPA Forms - which is designed to go through the new forms and discuss important issues that real estate professionals and consumers need to be aware of. Click Here to register.
The TRID Rules have the potential to impact real estate transactions in a number of ways. This course is designed to present the new disclosures that go into effect in 2015 and how the new disclosures are completed. We will also examine the required timeframes for disclosure.