That is the most frequently asked question among title and settlement agent regarding the August 1, 2015 implementation date for Integrated Mortgage Closing Disclosure Form (CDF). Can a lender/creditor require a settlement agent to use the form prior to August 1, 2015? The CFPB addressed this question their Compliance Guide.
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).
To view the entire Compliance Guide click below:
On Monday, September 8th, the CFPB released updated versions of the Small Entity Compliance Guide for the TILA-RESPA Integrated Disclosure Rule.
The CFPB also included a timeline that helps illustrate the process and timing of disclosures under the TILA-RESPA Integrated Disclosure Rule.
View the updated guides and timeline
On August 26 the Federal Reserve held a webinar addressing some FAQ’s from the CFPB’s TILA-RESPA Integrated Disclosure Rule. One hot topic covered was whether or not owner’s title insurance is subject to the 10% tolerance rule. Below is a summary from the webinar:
Q: Is owner’s title insurance not required by the creditor subject to the 10% cumulative tolerance?
No. Owner’s title insurance that is not required by the creditor is not subject to the 10% cumulative tolerance.
Owner’s title insurance is not a charge that is assigned to a particular tolerance category. If owner’s title insurance is not required by the creditor and is disclosed as an optional service, it is not subject to any tolerance violations, even if paid to an affiliate of the creditor.
The Federal Reserve will host a webinar to address frequently asked questions about the CFPB’s TILA-RESPA Integrated Disclosure rule. The webinar will take place on Tuesday, August 26 at 2 p.m. EST and address the new rule as the various industry stakeholders work to implement it over the next year. To learn more and sign up here.
Is your organization ready for the implementation of the new disclosures required by the Consumer Financial Protection Bureau? Looking for some training tools for your employees? If you are a Softpro customer check out the MySoftPro section at http://www.softprocorp.com for free training videos on the CFPB and the Final Rule.
On June 9, the U.S. House of Representatives unanimously passed H.R. 3211, the Mortgage Choice Act of 2013. The bill, sponsored by Rep. Bill Huizenga, R-Michigan, specifically exempts fees paid to businesses affiliated with the lender, such as title companies, from the computation of points and fees under the QM cap.
Posted in CFPB, HR 3211, Mortage, Mortgage Choice Act
Tagged Ability to Repay, CFPB, Consumer Financial Protection Bureau, House, HR 3211, Mortgage Choice Act, QM, Qualified Mortgage, Rulemaking, SoftPro