The Consumer Financial Protection Bureau’s (CFPB) final rule implementing the new RESPA/Truth in Lending Act (TILA) integrated mortgage disclosure forms doesn’t go into effect until August 2015. Getting ready for the forms, however, is going to take time. Along with the disclosures come various changes to the way the current forms are filled out and presented to the consumer. Knowing the regulation’s specific mandates can help keep you compliant in the future.
Itemization of fees and charges
When the Department of Housing and Urban Development implemented the 2010 Good Faith Estimate (GFE) and HUD-1 Settlement Statement forms, it bundled the title and closing costs together with the philosophy that consumers are more interested in what the total cost is going to be.
In its final rule, the CFPB decided to unbundle the costs, itemizing the charges separately so that consumers know exactly what they are paying for each service.
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