Final Rule on RESPA & the Truth-in-Lending Act (TILA)

On November 20, 2013, The Consumer Financial Protection Bureau (CFPB) released its final rule on the replacement of the current consumer disclosure forms under RESPA and the Truth-in-Lending Act (TILA). The new, integrated Loan Estimate Form and Closing Disclosure Form will go into effect on August 1, 2015.

The Closing Disclosure must be received by the borrower at least three business days before the closing. Changes to the closing figures are permitted without another three business day wait except if the creditor changes the APR above one-eighth of 1% for most loans, changes the loan product or adds a pre-payment penalty.

Please see the attached Loan Estimate Form and Closing Disclosure Form for your reference.

http://files.consumerfinance.gov/f/201311_cfpb_kbyo_loan-estimate.pdf

http://files.consumerfinance.gov/f/201311_cfpb_kbyo_closing-disclosure.pdf