This new rule, which applies to most closed-end consumer credit transactions secured by real property, is designed to streamline the currently required four disclosure forms, originally developed by two different Federal agencies into two, more user friendly forms. The Good Faith Estimate and the initial Truth-in-Lending disclosure have been combined into a new form: the Loan Estimate. The HUD-1 and final Truth-in-Lending disclosure have also been combined into a new form: the Closing Disclosure. Mortgage brokers and lenders, who receive a new application for such a transaction on or after August 1, 2015, must provide the new Integrated Disclosure forms.
These changes could result in significant delays to the closing process as we now know it. For example, last minute changes to the HUD ("Closing Disclosure" after August 1) will require a three day delay, in order to provide the required three day notice under the new rules.
It will be more important than ever for all involved: lenders, consumers, realtors, settlement companies and attorneys to stay flexible and communicate with each other during this time of transition.
Stay tuned to Tucker's Tips for more on the new TILA-RESPA Integrated Disclosure Rule!
Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville & Lake Monticello