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FAQ - General
  • 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? (§ 1026.19(e) and (f))
  • 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
  • What are the record retention requirements for the TILA-RESPA rule?
  • The creditor must retain copies of the Closing Disclosure (and all documents related to the Closing Disclosure) for five years after consummation.

    The creditor, or servicer if applicable, must retain the Post-Consummation Escrow Cancellation Notice (Escrow Closing Notice) and the Post-Consummation Partial Payment Policy disclosure for two years. For additional information, see section 15 below.

    For all other evidence of compliance with the Integrated Disclosure provisions of Regulation Z (including the Loan Estimate) creditors must maintain records for three years after consummation of the transaction.

    Source: Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure Rule, Small entity compliance guide, March 2015, section 2.3
  • What are the record retention requirements if the creditor transfers or sells the loan?
  • If a creditor sells, transfers, or otherwise disposes of its interest in a mortgage and does not service the mortgage, the creditor shall provide a copy of the Closing Disclosure to the new owner or servicer of the mortgage as a part of the transfer of the loan file.

    Both the creditor and such owner or servicer shall retain the Closing Disclosure for the remainder of the five-year period.

    Source: Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure Rule, Small entity compliance guide, March 2015, section 2.4
  • Is there a requirement on how the records are retained?
  • Regulations X and Z permit, but do not require electronic recordkeeping. Records can be maintained by any method that reproduces disclosures and other records accurately, including computer programs. (Comment 25(a)-2)

    Source: Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure Rule, Small entity compliance guide, March 2015, section 2.5
  • When do I have to start following the TILA-RESPA rule and using the new Integrated Disclosures?
  • The new Integrated Disclosures must be provided by a creditor or mortgage broker that receives an application from a consumer for a closed-end credit transaction secured by real property on or after August 1, 2015.

    Source: Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure Rule, Small entity compliance guide, March 2015, section 3.1
  • Are there any requirements that take effect on August 1, 2015 regardless of whether an application has been received on or after that date?
  • Yes. As discussed in section13, below, the TILA-RESPA rule includes some new restrictions on certain activity prior to a consumer’s receipt of the Loan Estimate. These restrictions take effect on the calendar date August 1, 2015, regardless of whether an application has been received on that date. These activities include:

    • Imposing fees on a consumer before the consumer has received the Loan Estimate and indicated an intent to proceed with the transaction (§ 1026.19(e)(2)(i));

    • Providing written estimates of terms or costs specific to consumers before they receive the Loan Estimate without a written statement informing the consumer that the terms and costs may change (§ 1026.19(e)(2)(ii)); and

    • Requiring the submission of documents verifying information related to the consumer’s application before providing the Loan Estimate (§ 1026.19(e)(2)(iii)).

    Source: Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure Rule, Small entity compliance guide, March 2015, section 3.2
  • Can a creditor use the new Integrated Disclosures for applications received before August 1, 2015?
  • No. For transactions where the application is received prior to August 1, 2015, creditors will still need to follow the current disclosure requirements under Regulations X and Z, and use the existing forms (Truth-in-Lending disclosures, GFE, HUD-1).

    Source: Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure Rule, Small entity compliance guide, March 2015, section 3.3
  • What transactions are covered by the TILA-RESPA rule? (§§ 1024.5, 1026.3, and 1026.19)
  • The TILA-RESPA rule applies to most closed-end consumer credit transactions secured by real property, but does not apply to:

    • HELOCs;
    • Reverse mortgages; or
    • Chattel-dwelling loans, such as loans secured by a mobile home or by a dwelling that is not attached to real property (i.e., land).

    Consistent with the current rules under TILA, the rule also does not apply to loans made by a person or entity that makes five or fewer mortgages in a calendar year and thus is not a creditor. (§ 1026.2(a)(17))

    There is also a partial exemption for certain transactions associated with housing assistance loan programs for low- and moderate-income consumers. (§ 1026.3(h))

    However, certain types of loans that are currently subject to TILA but not RESPA are subject to the TILA-RESPA rule’s integrated disclosure requirements, including:

    • Construction-only loans
    • Loans secured by vacant land or by 25 or more acres
    • Credit extended to certain trusts for tax or estate planning purposes also are covered by the TILA-RESPA rule.

    Source: Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure Rule, Small entity compliance guide, March 2015, section 4.1
  • What are the disclosure obligations for transactions not covered by the TILA-RESPA rule, like HELOCs and reverse mortgages?
  • The new Integrated Disclosures will not be used to disclose information about reverse mortgages, HELOCs, chattel-dwelling loans, or other transactions not covered by the TILA-RESPA rule. Creditors originating these types of mortgages must continue to use, as applicable, the GFE, HUD-1, and Truth-in-Lending disclosures required under current law.
    For these transactions associated with the partial exemption for housing assistance loan programs for low- and moderate-income consumers. (§ 1026.3(h)):

    • Creditors are exempt from the requirement to provide the RESPA settlement cost booklet, RESPA GFE, RESPA settlement statement, and application servicing disclosure statement requirements. (See §§ 1024.6, 1024.7, 1024.8, 1024.10, and 1024.33)

    • Creditors are exempt from the requirements to provide a Loan Estimate, Closing Disclosure, and Special Information Booklet for these loans. (§ 1026.3(h))

    Source: Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure Rule, Small entity compliance guide, March 2015, section 4.2
  • Does a creditor have an option to use the new Integrated Disclosure forms for a transaction not covered by the TILA-RESPA rule?
  • Creditors are not prohibited from using the Integrated Disclosure forms on loans that are not covered by TILA or RESPA (e.g., mortgages associated with housing assistance loan programs for low- and moderate-income consumers). (See §§ 1026.3(h) and 1024.5(d)(2)). However, a creditor cannot use the new Integrated Disclosure forms instead of the GFE, HUD-1, and Truth-in-Lending forms for transactions that are covered by TILA or RESPA that require those disclosures (e.g., reverse mortgages).

    Source: Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure Rule, Small entity compliance guide, March 2015, section 4.3
  • 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