July 21, 2010 — The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into federal law by President Obama, and was enacted, in part, to:
– clean up Wall Street,
– regulate the mortgage industry, and
– protect consumers.
July 21, 2011 — The Consumer Financial Protection Bureau (“CFPB”), which was cre-ated by the Dodd Frank Act, became operational. The CFPB is a consumer watchdog organization, with a $450mm budget and over 1400 employees.
April 13, 2012 – The CFPB issued a bulletin to lenders reminding them that lenders are directly responsible for the activities of third party service providers (which includes title companies). The bulletin outlined CFPB’s expectations of the lenders in selecting and monitoring these third party service providers. In response to the concerns raised by this issue, the ALTA developed standards or “Best Practices” for title agents to consider implementing that address seven main areas of concern to lenders. A summary of these Best Practices can be found at FNTG.com/bestpractices.
November 20, 2013 — The Dodd-Frank Act of 2010 moved the oversight of RESPA from HUD to the CFPB, and required the CFPB to combine the TILA, GFE and HUD-1 forms. The CFPB released its final rules, which were 1888 pages long, on 11-20-13. The two new “Integrated Disclosure” forms created by the CFPB are:
Loan Estimate (“LE”) Form — combines “Early TILA” disclosure and GFE forms:
• Comes three business days after application for loan.
Closing Disclosure (“CD”) Form — combines “Final TILA” and HUD-1 forms:
• Comes three business days before closing of the loan.
September 8, 2014 — The CFPB posts numerous documents on its’ website, including updated compliance guides, a calendar demonstrating the RESPA-TILA rule’s disclosure timing requirements for a sample real estate purchase transaction, and webinars that take an in-depth look at the TILA-RESPA Integrated Disclosures. Anyone interested in learning more about the new forms and timelines should review this infor-mation at: http://www.consumerfinance.gov/regulatory-implementation/tila-respa/?utm_source=newsletter&utm_medium=email&utm_campaign=20140908+regimp
What Can You Do Now? Talk to lenders and customers. Ask questions. How are they going to handle the changes outlined above? How are they going to handle coordination of form preparation?
August 1, 2015 — The new Integrated Disclosure forms 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. NOTE: The new integrated disclosure forms cannot be used earlier than this 8-1-15 date.