The CFPB recently issued an 89-page small entity compliance guide for the TILA-RESPA Integrated Disclosure Rule (the “Guide”). As we reported previously, the CFPB issued the final rule in November 2013 to integrate the initial and final mortgage loan disclosures under the Truth in Lending Act and RESPA. The final rule appeared in the December 31, 2013 Federal Register, and the rule becomes effective August 1, 2015.
The Guide is divided into 17 main sections, and initially provides an overview of the final rule and its scope. The Guide addresses the initial disclosure—the Loan Estimate—including the requirements for delivery, content and revisions, and the limits on the amount charges disclosed in the Loan Estimate may increase. It also addresses the final disclosure—the Closing Disclosure—including requirements for delivery, content and revisions. The Guide makes clear that the integrated disclosures provided for in the rule may not be implemented before August 1, 2015.
The Guide includes information about two separate disclosure requirements—the escrow closing notice for cases in which a required escrow account will be terminated, and the disclosure of a lender’s applicable policies regarding acceptance of partial payments that must be included in a mortgage transfer notice.
The Guide concludes by addressing practical implementation and compliance issues, and providing information on obtaining a copy of the final rule and additional guidance. While the final rule is detailed and the preamble to the final rule is lengthy, it is likely that the CFPB will need to provide significant additional guidance to the industry as it moves forward to implement the rule.