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7 posts from November 2013


Watch Recording of Webinar on CFPB's New Mortgage Disclosures

We had a huge turnout of 1,000 attendees for Thursday's webinar "A New Era in Closings," which addressed the Consumer Financial Protection Bureau's final rule for integrated mortgage diclosures. Since we exceeded our attendee limit, many could not attend the webinar. Below is a recording, so please share with others. We plan to hold many more webinars over the next year to help members implement the new disclosures and educate customers and consumers.

Participating on the call were:

  • Michelle Korsmo, ALTA
  • Steve Gottheim, ALTA
  • Ben Olson, BuckleySandler
  • Ruth Dillingham, First American Title Insurance Co.
  • Mary Schuster, op2 and RamQuest
  • Leslie Wyatt, SoftPro
The webinar touched on why the CFPB created new integrated mortgage disclosures, the goals of the CFPB's "Know Before You Owe Project," basics of the final rule, the forms, impact the rule will have on the industry and next steps. The panelists answered attendee questions for about 20 minutes and discussed who provides the Closing Disclosure to the consumer and role of the settlement agent, the three-day rule, the need for clear guidance and the use of the word "optional" to describe Owner's Title Insurance on the forms.

A new Loan estimate will replace the current Good Faith Estimate and early Truth-in-Lending (TIL) disclosure, while a new Closing Disclosure will replace the HUD-1 Settlement Statement and the final TIL disclosure. The new forms go into effect Aug. 1, 2015.

You can also download a copy of the presentation.


Copy of presentation from webinar titled "A New Era in Closings"

We had more than 1,400 people register for today’s webinar "A New Era in Closings," which addressed the Consumer Financial Protection Bureau's final rule for integrated mortgage disclosures. Our provider, however, has a limit of 1,000 attendees. If you could not access the webinar, please know that is was recorded. After it’s edited, you will be able to watch the prese
ntation on our YouTube channel at www.youtube.com/altavideos or on our blog.

The webinar focused on top-level analysis of the final rule, which is 1,888 pages long. This was only the first of many educational opportunities we will provide about the integrated mortgage disclosures.

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CFPB Provides Seven-page Summary of Mortgage Disclosure Rule

201311_cfpb_tila-respa_detailed-summary_Page_1If you don't have time to read all 1,888 pages of the Consumer Financial Protection Bureau's final rule for integrated mortgage disclosures, the Bureau has provided this great summary document, which addresses the scope of the rule, highlights the new Loan Estimate and Closing Disclosure, limits on closing cost increases and proposals not adopted in the final rule.

The CFPB listened to ALTA concerns and gave the industry plenty of time to implement the new forms as the final rule becomes effective Aug. 1, 2015.

You can download a PDF of the summary here.

ALTA CEO Testifies during CFPB Field Hearing on Integrated Mortgage Disclosures

Michelle Korsmo, ALTA’s chief executive officer, testified Wednesday during a field hearing in Boston as the Consumer Financial Protection Bureau addressed its “Know Before You Owe” project and released its final rule for integrated mortgage disclosures. Check out video of her testimony:

Submit Your Questions/Comments About the CFPB's Integrated Mortgage Disclosures

Please send your questions or comments about the Consumer Financial Protection Bureau's final rule for integrated mortgage disclosures to respacomments@alta.org. We will post answers and analysis to the final rule and forms here on our blog. We encourage title professionals to follow the blog as we will continue to provide analysis and information about implementing the new mortgage disclosures. The CFPB set an effective date of Aug. 1, 2015 for the industry to begin using the new disclosures.

Here are links to the final rule, Loan Estimate and Closing Disclosure:

The CFPB also has provided some additional information, including a factsheet about the integrated mortgage disclosures and information about the testing process used to arrive at the final rule.


Three Things to Prepare Now for New Integrated Mortgage Disclosures

It’s been several months since the comment period to the Consumer Financial Protection Bureau’s proposed rule to integrate mortgage disclosures required under the Real Estate Settlement Procedures Act and the Truth In Lending Act.

The Bureau has proposed a new Loan Estimate and Closing Disclosure that will replace the current Truth in Lending (TIL), Good Faith Estimate (GFE) and HUD-1 Settlement Statement.

The industry is now in a waiting period before the CFPB issues its final rule, which is expected to happen sometime before the end of the year. In the meantime, there are several things can title professionals do now to prepare, according to Leslie Wyatt, director of industry relations for SoftPro.

Wyatt said that it’s not likely much will change from the proposed rule to when the CFPB issues its final rule. Title professionals should start training and educating staff on the proposed regulations and guidelines, as well as the proposed Closing Disclosure. As an aid, starting on page 839 of the 1,099-page rule, the CFPB provides examples of how to fill out the Closing Disclosure for different loan products.

Currently, settlement agents are required to provide the HUD-1, while lenders are required to provide the revised Truth-in-Lending disclosure. The CFPB is proposing two alternatives for who is required to provide consumers with the new Closing Disclosure form:

  1. Under the first option, the lender would be responsible for delivering the Closing Disclosure form to the consumer.
  2. Under the second option, the lender may rely on the settlement agent to provide the Closing Disclosure form. However, under this option, the lender would also remain responsible for the accuracy of the Closing Disclosure form.

Either option will impact a company’s workflow. Assuming settlement agents produce the Closing Disclosure, settlement agents will need to start working with lenders earlier in the process to get final numbers and approvals. If the lender provides the disclosure, settlement agents will need to provide final settlement numbers to lender earlier in the process and alert the lender of changes in those numbers and reasons for them.

In addition to educating staff on the rule and Closing Disclosure, Wyatt encourages title professionals to start talking with software vendors.

Wyatt said title professionals should be asking their software vendor these questions:

  • How do they plan to handle the proposed changes?
  • How involved are they with the CFPB and industry trade associations?
  • Will there be any costs to your company for any software updates?
  • Will your current operating system be able to accommodate the updated software?
  • Will they be offering any training on the upcoming final rule?

Additional Resources

CFPB to Host Public Hearing on Integrated Mortgage Disclosures

The Consumer Financial Protection Bureau announced it will hold a field hearing at 11 a.m. ET, Wednesday, Nov. 20 to address the Bureau’s “Know Before You Owe” project.

The field hearing will feature remarks from CFPB Director Richard Cordray on the Bureau’s efforts to combine overlapping federal disclosure forms required by the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA).

A new Closing Disclosure will replace the HUD-1 and revised TIL disclosure, while a Loan Estimate will replace the GFE and early TIL. Testimony from consumer groups, industry representatives and members of the public also will be featured during the field hearing.

ALTA will provide updates from the hearing, which will be streamed live on the CFPB’s blog. ALTA staff planning to attend include Michelle Korsmo, chief executive officer, and Justin Ailes, vice president of government and regulatory affairs. If interested in attending, email an RSVP to cfpb.events@cfpb.gov with your full name and organizational affiliation (if any).

If you plan on attending, please send an email to ALTA as well, as the association plans on holding a roundtable following the field hearing to discuss concerns with the integrated mortgage disclosure proposal.

For more info, go to www.alta.org/cfpb.