CFPB Issues RESPA/TILA Rule
On Wednesday Nov. 20, 2013 the CFPB issued the final RESPA/TILA rule. The CFPB followed many of NAR’s suggestions to improve its initial proposal. For example, the initial proposal would have required a three day waiting period for virtually any changes to the settlement statement (HUD-1). Now, only major changes to loan type, terms, or pricing will require a waiting period, similar to current TILA rules.
The rule is extensive at more than 1800 pages and does combine the GFE and Truth in Lending (TIL) disclosure and makes changes to the settlement statement and process. NAR is continuing to evaluate the rule and will provide guidance to members and the public. NAR will also continue to work with CFPB to ensure that the rule does not inadvertently increase costs, delay transactions, or otherwise make it more difficult for consumers to purchase homes. The CFPB gave industry more than a year and a half to implement the rule. It becomes effective in August 2015.