As we indicated, the CFPB introduced their final rule to simplify and improve consumer mortgage disclosures under an integrated mortgage disclosure platform for RESPA and TILA. The CFPB did so at an event in Boston, Massachusetts on November 20, 2013.
The final rule introduces a combined closing disclosure consisting of a Loan Estimate (the Good Faith Estimate) and the Closing Disclosure (the HUD-1 Settlement Statement). The rule also requires the Closing Disclosure to be provided to the consumer no less than three days prior to the consummation of the loan and maintains that the duties of preparing the disclosure can be assigned to the settlement agent, but that primary liability for the document will rest with the lender.
NAILTA provided detailed comments during CFPB's open comment period and we are happy that many of our suggestions were taken into account in the final rule. Among those concerns:
1. Creating a shared responsibility for the production of the Closing Disclosure between lender and settlement agent.
2. "Affiliated" provider charges should remain zero tolerance charges under the new rule.
3. Extending the effective date deadline to the latest date practical to allow for software vendor implementation and systems updates.
A complete copy of the final rule can be found by clicking here.
Since the final rule, with commentary and text, totals well over 1,800 pages, we have drafted the enclosed memorandum to help our members begin their process of compliance.
The effective date of the rule is August 1, 2015, but you will want to begin researching the compliance efforts of your software providers and lenders at the earliest possible moment.
Stay tuned for more updates on this important issue.
The State of Ohio Attorney General's Office has posted the new HOEPA disclosure with an updated prepayment penalty for 2014.
OAMP members can access the updated documents by signing into the member section and selecting the link.
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The CFPB has released their compliance guide and final rules for:
TILA HPML Appraisal Rule
Login to the members section to read the rules and see the effective date of the change.