Find Guidance on Integrated Disclosures

CFPB offers resources on the TILA/RESPA Integrated Disclosure Rule.

June 1, 2014

The Consumer Financial Protection Bureau (CFPB) released a Small Entity Compliance Guide on the Truth in Lending Act (TILA)/ Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure Rule.

The guide highlights issues that credit unions and other financial institutions might find helpful when implementing the rule. The CFPB resource page features the guide, along with links to sample disclosure forms, such as a blank loan estimate form and a blank closing disclosure form that’s annotated with rule citations.

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:

  1. 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
  2. A closing disclosure that must be provided to the consumer at least three business days prior to consummation.

The TILA/RESPA rule applies to most closed-end consumer credit transactions secured by real property. However, some specific categories of loans are excluded.

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)).

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 Aug. 1, 2015.

Creditors will still be required to use the Good Faith Estimate (GFE), HUD-1, and TIL forms for applications received prior to Aug. 1, 2015. As the applications received prior to Aug. 1, 2015 are consummated, withdrawn, or cancelled, the use of the GFE, HUD-1, and TIL forms will no longer be used for most mortgages.

For additional information about the new TILA/RESPA rule as well as its implications for credit unions, see “Integrated Mortgage Disclosures Improve Clarity,” from the February 2014 issue of Credit Union Magazine