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Information about TILA-RESPA

The Dodd-Frank Act directed the Consumer Financial Protection Bureau (CFPB) to integrate certain mortgage loan disclosures which are currently required under The Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). The changes make the disclosures more clear, concise, and consistent among all lenders. The changes also ensure customers promptly receive the information they need to make the best financial decision based on a clear summary of loan features, prices, and fees.

  Official name  

"Truth In Lending Act (Regulation Z) - Real Estate Settlement Procedures Act (Regulation X) (TILA-RESPA) Integrated Disclosure Rule"

Impacts to the industry

The TILA-RESPA Integrated Disclosure Rule mandates significant changes to the disclosure forms that all lenders provide to customers applying for a closed-end mortgage loan along with changes that will require certain fees to be more specifically disclosed. The rule also states lenders are responsible for retaining evidence of compliance with the new requirements. Failure to meet the requirements may result in consumer litigation, in addition to monetary fines and other disciplinary actions.

To help ensure the new disclosures meet the objectives of protecting customers and helping them better understand the mortgage process, the CFPB completed extensive consumer and industry research.

All lenders must comply with the TILA-RESPA Integrated Disclosure Rule with applications for closed-end mortgages taken on or after October 3, 2015.

Before October 3, 2015 On or after October 3, 2015
Within 3 business days of application, customers receive the Initial Truth-in-Lending (TIL) and Good Faith Estimate (GFE)
  • Customers receive a new document called the Loan Estimate (LE).
  • The Initial TIL and GFE will be replaced by the LE.
  • The LE must be provided within 3 business days of application.
  • Fee changes based on valid change circumstances will be re-disclosed on a revised LE.
  • After the customer receives their initial LE, Wells Fargo must obtain the customer's Intent to Proceed, confirming the customer's intent to proceed with the application, prior to imposing fees (other than the Credit Report Fee) on the customer.
At closing, customers receive the Final TIL and HUD-1
  • Customers receive a new document called the Closing Disclosure (CD).
  • The Final TIL and HUD-1 will be replaced by the CD.
  • The CD must be received by the customer no later than 3 business days prior to closing to provide ample review time.
  • If certain information on the CD is changed, a revised CD must be provided to the customers. In some circumstances, the 3-day timer must be restarted.