Resources for RESPA-TILA Changes Effective August 1, 2015

Resources for RESPA-TILA Changes

​​​​​​​​​​The Real Estate Settlement Procedures Act (RESPA) and the Truth In Lending Act (TILA) has been amended with an effective date of August 1, 2015.

These changes establish new disclosure requirements and forms for most closed-end consumer credit transactions that are secured by real property. Closed-end credit refers to credit that is to be repaid in full (along with any interest and finance charges) by a specified date in the future. Any creditor or mortgage broker receiving a mortgage application on or after the August 1, 2015 date will be required to comply with the new law requirements.

Two new forms will replace the current disclosure forms. They are the Loan Estimate form, which must be provided to the borrower three (3) business days after application and the Closing Disclosure form, which must be provided to the borrower three (3) days before closing.

This pamphlet, RESPA-TILA changes – What it means for consumers, created by the Consumer Financial Protection Bureau, outlines in simple terms the changes for the borrower and provides a bit of insight as to how the changes will benefit them. You may also want to provide the borrower with this link to a Home Loan Toolkit that allows the consumer to have a better idea of the amount and type of loan they will be able to afford.

In addition, to make your life a bit easier, (NOT) I have attached a link (Resources to help you comply) to the Consumer Financial Protection Bureau's website that includes loan disclosure forms, disclosure timelines and a guide to assist each of you in complying with the new regulations come August 1.

Please let us know how we at can assist you with any of your online?real estate education needs.

  • April 9, 2015
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