The TILA-RESPA Integrated Disclosure rule went into effect on October 3, 2015. This “Know Before You Owe” mortgage initiative is designed to empower buyers with the information they need to make informed mortgage choices.
Mortgages can be complex and confusing. This new rule primarily does two things:
- It simplifies and consolidates some of the required loan disclosures, and
- It changes the timing of some activities in the mortgage process.
Click here to download a step by step guide to understanding the new lending process. http://files.consumerfinance.gov/f/201503_cfpb_your-home-loan-toolkit-web.pdf
An Explanation of the Loan Estimate:
When you receive a Loan Estimate, it should reflect a particular loan you discussed with a lender. Check to see that everything matches your expectations. If something looks different from what you expected, ask why. This tool will help you review your Loan Estimate and get definitions for unfamiliar terms. http://www.consumerfinance.gov/owning-a-home/loan-estimate/
An Explanation of the Closing Disclosure:
Lenders are required to provide your Closing Disclosure three business days before your scheduled closing. Use these days wisely. This tool will help you double-check that all the details are correct. If something looks different from what you expected, ask why. Now is the time to resolve problems—if the explanation you get isn’t satisfactory, keep asking questions. http://www.consumerfinance.gov/owning-a-home/closing-disclosure/