Coleman Talley hosted a breakfast seminar in Valdosta, Georgia, on April 29, 2015, at the James H. Rainwater Conference Center on the topic of TILA-RESPA compliance rules effective August 1, 2015. The changes represent the most significant revisions to these rules in 40 years. The seminar was well attended by nearly 100 mortgage and commercial lending professionals. Those presenting at the seminar included Coleman Talley Partner, Richard Coleman, J.D. Crowe, President of the Georgia Association of Mortgage Brokers, and Scott Logan, Georgia State Counsel for First American Title Insurance Company.
The new rules effective August 1, 2015, are a result of the The Dodd-Frank Wall Street Reform and Consumer Protection Act which provided direction to the Consumer Financial Protection Bureau to integrate the mortgage loan disclosures under TILA and RESPA sections 4 and 5. The TILA-RESPA rule also provides a detailed explanation of how the forms should be filled out and used. One of the more important elements of the rule is a change in how the loan transaction information is presented on the documents. The simplified documents were developed with significant consumer input and with the goal of making the content easier to understand. The rules regarding the delivery of the Loan Estimate will change as well. The delivery of the Loan Estimate now begins the seven-day waiting period before loan consummation.
Additionally, there are significant changes to the Closing Disclosure delivery requirements. Consumers must receive the Closing Disclosure three business days before consummation. The new timing requirements for revisions or corrections to the disclosures will also impact existing process workflows and operational procedures for both lending professionals and settlement providers.