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TILA-RESPA Integrated Disclosure Forms

June 16, 2015

From Loan Officer Daphne Tapp

From Loan Officer Daphne Tapp

You usually see multiple disclosure forms when applying for a mortgage. It can be a bit confusing. These forms were created by different laws and at different times. In many cases, they have similar figures, making them even more confusing to digest. The TILA-RESPA integrated disclosure forms will address the documentation provided to home buyers.

The New Loan Estimate Form

The new loan estimate form combines items from the Truth-in-Lending (TIL) and Good Faith Estimate (GFE) paperwork. This disclosure will provide information on the terms of the mortgage, fees charged, projected loan payments, and other crucial information. This will be helpful for comparing specific loan alternatives from one company or from multiple ones. Once you apply for a mortgage, the lender must give you this form within 3 business days.

The New Closing Disclosure

The closing disclosure form details the costs involved with a mortgage. It will combine figures included in the settlement form and Truth-in-Lending disclosure. There are normally a range of costs. To organize the information, fees will be arranged into a few categories such as loan costs, recording fees, and pre-paid expenses. This document comes further along in the process; it must be provided no later than 3 work days prior to closing.

TILA-RESPA Integrated Disclosure Forms

These forms will be launched August 1, 2015. If you fill out a mortgage application on or after that date, you will see these new disclosures. This rule does not apply to reverse mortgages or home equity lines. Regardless of which documents you receive, you should always call your loan officer if you have difficulty understanding the terms that apply to your particular loan. The information on the TILA-RESPA integrated disclosure forms in this article is shared only as a brief summary and does not cover every component of the planned implementation.

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