MEMBERSHIPS/ASSOCIATIONS

Changing The Good Faith Estimate, the initial Truth in Lending Disclosure, the final Truth in Lending Disclosure and the HUD-1 Settlement Statement, as you know it, are all changing. The Dodd-Frank Wall Street Reform and Consumer Protection Act directed the Consumer Financial Protection Bureau (CFPB) to publish rules and forms that combine certain disclosures that consumers receive in connection with applying for and closing on a mortgage loan under the Truth in Lending Act (Regulation Z) and the Real Estate Settlement Procedures Act (Regulation X).

The Good Faith Estimate and initial Truth in Lending Disclosure are combined into a new form called the Loan Estimate. The final Truth in Lending Disclosure and the HUD-1 Settlement Statement are combined into a new form called the Closing Disclosure. The CFPB has expanded its "Know Before You Owe" toolkit for consumers to include an explanation of the new forms. Read all about it here and share with your clients. Click here to download the toolkit itself and make this document available to your clients during your pre-purchase counseling sessions.