July 13, 2017
On July 7, 2017, the Consumer Financial Protection Bureau issued a final rule amending and clarifying certain mortgage disclosure requirements under the Real Estate Settlement Procedures Act and the Truth in Lending Act that are implemented in Regulation Z ("2017 TILA-RESPA Rule").
Among other changes, the 2017 TILA-RESPA Rule:
The 2017 TILA-RESPA Rule is effective 60 days after publication in the Federal Register. Compliance with the rule is mandatory for applications received on or after October 1, 2018. However, the escrow closing notice and partial payment disclosure requirements apply starting October 1, 2018, without regard to when the creditor or mortgage broker receives the application. The final rule also includes an optional compliance period, which begins on the rule's effective date. The Bureau has provided an executive summary of the rule and will provide additional implementation resources in the future. It has also updated the TILA-RESPA Integrated Disclosure Rule Small Entity Compliance Guide and Guide to the Loan Estimate and Closing Disclosure Forms.
In addition to the issuance of the 2017 TILA-RESPA Rule, the CFPB is issuing a notice of proposed rulemaking regarding when a creditor may use a Closing Disclosure, instead of a Loan Estimate, to determine if an estimated closing cost was disclosed in good faith and within tolerance. This is the "Black Hole" problem for which the Bureau originally proposed a solution, but has now decided to seek further comment. Comments on the notice of proposed rulemaking are due 60 days after publication in the Federal Register.