The Bureau of Consumer Financial Protection (CFPB) has issued a final rule modifying the Federal mortgage disclosure requirements under the Truth in Lending Act and the Real Estate Settlement Procedures Act (TILA-RESPA) that are implemented in Regulation Z. This rule memorializes CFPB’s informal guidance and makes additional clarifications and technical amendments on various issues including affiliate charges, calculating cash-to-close table, construction loan instructions, placement of decimal places and rounding, escrow account disclosures, escrow cancellation notices, expiration dates for the closing costs disclosed on the loan estimate, treatment of gift funds, payment ranges on the projected payments table and informational updates to the loan estimate. This rule also creates tolerances for the total of payments, adjusts a partial exemption mainly affecting housing finance agencies and nonprofits, extends coverage of the TILA-RESPA integrated disclosure requirements to all cooperative units, and provides guidance on sharing the integrated disclosures with various parties involved in the mortgage origination process. The final rule is effective 60 days after the date of publication in the Federal Register, and mandatory compliance is effective October 1, 2018.
View the final rule here.