First Guaranty Mortgage Corporation - Compliance Department




What is the TILA-RESPA rule about?

The TILA-RESPA rule consolidates four existing disclosures required under TILA and RESPA for closed-end credit transactions secured by real property into two forms: a Loan Estimate that must be delivered or placed in the mail no later than the third business day after receiving the consumer’s application, and a Closing Disclosure that must be provided to the consumer at least three business days prior to consummation.  Source: Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure Rule, Small entity compliance guide, March 2015, section 2.1


What transactions does the rule cover?

The TILA-RESPA rule applies to most closed-end consumer credit transactions secured by real property. Credit extended to certain trusts for tax or estate planning purposes is not exempt from the TILA-RESPA rule. (Comment 3(a)-10). However, some specific categories of loans are excluded from the rule. Specifically, the TILA-RESPA rule does not apply to HELOCs, reverse mortgages or mortgages secured by a mobile home or by a dwelling that is not attached to real property (i.e., land). (§ 1026.19(e) and (f)).  Source: Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure Rule, Small entity compliance guide, March 2015, section 2.2


Are there any requirements that take effect on August 1, 2015 regardless of whether an application has been received on or after that date?

The TILA-RESPA rule consolidates four existing disclosures required under TILA and RESPA for closed-end credit transactions secured by real property into two forms: a Loan Estimate that must be delivered or placed in the mail no later than the third business day after receiving the consumer’s application, and a Closing Disclosure that must be provided to the consumer at least three business days prior to consummation.  Source: Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure Rule, Small entity compliance guide, March 2015, section 2.1


Where can I find a copy of the TILA-RESPA rule and get more information about it?

You will find the TILA-RESPA rule on the Bureau’s website at:
http://www.consumerfinance.gov/regulatory-implementation/tila-respa/

In addition to a complete copy of the TILA-RESPA rule, that web page also contains:
  • The preamble, which explains why the Bureau issued the rule, the legal authority and reasoning behind the rule, responses to comments, and analysis of the benefits, costs, and impacts of the rule;
  • Official Interpretations of the rule;
  • The TILA-RESPA Guide to Forms; and
  • Other implementation support materials (including proposed rule amendments, if applicable).
Useful resources related to mortgage rule implementation are also available at: http://www.consumerfinance.gov/regulatory-implementation/
Source:  Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure Rule, Small entity compliance guide, March 2015, section 17

 
TRID Resource Center
First Guaranty Mortgage Corporation®
This email is for information purposes only and should not be construed as legal or compliance advice.
Visit my LinkedIn ProfileVisit my LinkedIn Profile


The Change Agent of the Mortgage Industry
 
Click here to unsubscribe.
Equal Housing Opportunity Mortgage Bankers Association Member Inc 5000 -
Powered by:  
Vango
This information is solely for mortgage professionals and should not be provided to consumers or third parties. FGMC is a mortgage lender and is not affiliated with, working on behalf of or at the direction of the FHA, VA, USDA or the federal government.
 
Please consider the environment before printing this email.
 
This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to which they are addressed. If you have received this email in error, please note that any use, copying or distribution of this e-mail, in whole or in part, is strictly prohibited. Please notify the sender by return e-mail of the error and delete this e-mail from your system. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.