TILA-RESPA Integrated Disclosure Changes

You typically receive multiple disclosure forms when trying ot obtain a home loan. It is easy to get confused. Many of these were required by different legislation over the years. In some cases, they have similar facts, making it even more complicating to look through. The TILA-RESPA integrated disclosure changes will make the disclosures provided to home buyers less complicated.

The Loan Estimate Form

The new loan estimate document combines figures from the Truth-in-Lending (TIL) and Good Faith Estimate (GFE) forms. This form will give details on the features of their loan, fees charged, estimated mortgage payments, and any risks involved. This can be useful for comparing particular loan alternatives from a single company or from different ones. Lenders will generate this form within 3 business days of your application submission.

The Closing Disclosure Document

The closing disclosure document includes the specific fees related to the home loan. It will combine figures previously included in the Truth-in-Lending disclosure and settlement statement. To help simplify the different costs, fees are grouped into a few categories such as loan costs, recording fees, and pre-paids. This document is available further along in the transaction; it must be provided no later than 3 work days prior to closing.

TILA-RESPA Integrated Disclosure Changes

The revised forms will be launched August of 2015. If you apply for a mortgage on or after that date, you will see the new format. This rule does not apply to reverse mortgages and equity loans. Regardless of which disclosures you get, you should always touch base with your loan officer if you are unclear about anything regarding your home loan. The information on the TILA-RESPA integrated disclosure changes in this blog is provided only as an overview and does not provide every detail of the planned changes.

About Mini Major

Mini views the purchase or sale of a home as a major life transition that usually evokes a wide array of challenges and emotions She brings her strong analytical, communication, and mediation skills to that process. For buyers, she helps to assess realistic goals and maps out a facilitation strategy that is uniquely designed to meet their individual styles with limited stress. For sellers, she provides honest, factual information necessary to set the right price and, together with the extraordinary resources of the Bean Group, provides state-of-the art marketing materials to present that property with appeal to the most appropriate potential buyers.

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