May 13, 2015

Big Changes are Coming to the U.S. Home Closing Process. We’re Ready!



Big Changes are Coming to the U.S. Home Closing Process. We’re Ready!

You may have heard of the TILA-RESPA Integrated Disclosure (TRID) rule—or, perhaps, that there will be significant regulatory changes happening in the U.S. mortgage and home closing process effective August 1, 2015. Whoever your employee’s lender of choice is, they are likely making preparations and changes in their systems to respond to the change; we certainly are at Cartus Home Loans.

We have thoroughly reviewed the TRID requirements and are making extensive modifications to our systems and processes, as well as creating reference tools to make sure that we are compliant, so the changes will be seamless to you and your employees. Not sure what it’s all about? Here is a brief overview.

Overview of TILA-RESPA

As part of the Dodd-Frank Wall Street Reform Act (“Dodd-Frank”), the Consumer Financial Protection Bureau (CFPB) was charged with the task of revising and simplifying the rules regarding mortgage lending under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).

In short, 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:

•  The Loan Estimate replaces the Good Faith Estimate (GFE) and the “early” Truth-in-Lending (TIL) disclosure, and must be delivered or placed in the mail no later than the third business day after receiving the consumer’s application.

•  The Closing Disclosure replaces the HUD-1 and the Truth-in-Lending (TIL) disclosure and must be received by the consumer at least three business days prior to consummation. Consummation occurs when the consumer becomes contractually obligated to the creditor on the loan, which varies depending on applicable state law.

We’ll be ready when the new rules go live, so the process will be seamless for your transferring employees.

If you’d like more background information on these new regulations, please take a few moments to view this video from our sister company, Title Resource Group (TRG), which provides an overview of CFPB’s new TILA-RESPA Rule and what it means to you and your employees.

Be on the lookout for further updates and information on the TRID rules before they go live on August 1, 2015.

Picture of Karen  Golden

Posted By

Karen Golden

About Karen

Karen Golden is Director of Sales and Account Management for Guaranteed Rate Affinity. She has worked in the relocation, real estate, and mortgage industries for more than 20 years.

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