Mortgage Disclosures – Integration of RESPA and TILA

In July 2010, the Dodd-Frank Wall Street Reform Consumer Protection Act was enacted.

This legislation was designed to promote the financial stability of the United States by implementing new financial processes designed to improve both accountability and transparency in the financial system. To regulate this Act, Congress established the Consumer Financial Protection Bureau (CFPB) with the sole purpose to protect consumers.

For more than 30 years, Federal law has traditionally required Lenders to provide two separate disclosure forms to consumers applying for a mortgage; these were generally required at, or shortly before closing on the loan. The forms were developed by two different Federal agencies, the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act of 1974 (RESPA), and were found confusing by consumers and burdensome to lenders and settlement agents.

To improve consumer understanding of the mortgage process and help prevent surprises at the closing table, the CFPB issued a final ruling (November 2013) designed to integrate RESPA and TILA. The TILA-RESPA Integrated Disclosure rule originally scheduled to take effect August 1st has been delayed and is now tentatively scheduled to commence October 1st, 2015.

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