Friday, September 1, 2017

CFPB publishes new TILA/RESPA mortgage disclosure guidance

By Katalina M. Bianco, J.D.
The Consumer Financial Protection Bureau has published support material intended to assist stakeholders in implementing the Bureau's July 2017 final rule that updated the "Know Before You Owe" mortgage disclosure rule. The final rule modified the mortgage disclosure requirements under the Real Estate Settlement Procedures Act and Truth in Lending Act that are implemented in Reg. Z.
The support material, entitled "2017 TILA-RESPA Rule: Detailed Summary of Changes and Clarifications," provides a comprehensive summary of the 2017 TILA-RESPA rule, as well as examples of how to apply the final rule’s provisions.
Topics covered by the support material include:
  • effective date and mandatory compliance date, including an optional compliance period;
  • application of the mortgage disclosure requirements to cooperative units and trusts;
  • treatment of tolerances and good faith requirements;
  • shopping for settlement services;
  • principal curtailments;
  • total of payments disclosure;
  • simultaneous subordinate lien loans;
  • construction loans;
  • the use of positive and negative numbers for certain disclosures;
  • payoff disclosures; and
  • separation of consumer and seller information on closing disclosures.
For more information about the TILA/RESPA final rule and Bureau guidance, subscribe to the Banking and Finance Law Daily.