CFPB Issues Summary of Changes and Clarifications to 2017 TILA-RESPA Rule

Agency Rule-Making & Guidance CFPB RESPA TILA TRID Mortgages

On August 30, the CFPB released “2017 TILA-RESPA Rule: Detailed Summary of Changes and Clarifications” to assist the mortgage industry in implementing the disclosure requirements of the CFPB’s recently finalized TILA-RESPA Rule. The summary provides an in-depth outline of modifications to the rule, and explains and corrects certain provisions.

Topics covered by the summary include:

• “Effective date and mandatory compliance date”;
• “Coverage,” specifically with respect to cooperative units, trusts, and housing assistance loans;
• “Good faith requirement (i.e., tolerances) and revised disclosures”;
• “Shopping for settlement services”;
• “Disclosure of principal reductions (also known as principal curtailments)”;
• “Total of payments disclosure”;
• “Simultaneous subordinate lien loans”;
• “Construction loans”;
• “Use of positive and negative numbers for certain disclosures in the Loan Estimate and Closing Disclosure”;
• “Rounding”;
• “Calculating cash to close”;
• “Disclosure of payoffs of existing liens, and unsecured debt”;
• “Disclosure of estimated value when no sales price or appraised value”;
• “Separation of consumer and seller information on Closing Disclosures”;
• “Other disclosures in the Loan Estimate”;
• “Other disclosures in the Closing Disclosure”; and
• “Other minor changes” (including correcting typographical errors).

In addition to the summary, the CFPB also provided additional reference materials to help industry participants to comply with the rule. The rule becomes effective on October 10.