February 26, 2014

Webcast: 'Extreme' changes to TILA, RESPA

Feb. 27, 2014 – The thorough and "extreme" changes made by CFPB to disclosure requirements under the Truth in Lending Act and Real Estate Settlement Procedures Act, set to go into effect in August 2015, were discussed during NAFCU's webcast yesterday.

Webcast speaker Steve Gottheim, legislative and regulatory counsel with American Land Title Association, said CFPB made many changes to the TILA/RESPA disclosure requirements and that the "changes are extreme"; he said that's the reason the bureau gave the industry a good amount of implementation time. Bart Shapiro, principal with Offit Kurman, added that this particular rule received about 30,000 comments during its various rounds before being finalized.

During Wednesday's webcast, "TILA/RESPA Series: Part 1 – An Overview," Gottheim and Kurman noted that the bureau's goals for this rule change are to improve consumer understanding, provide better comparison shopping and avoid costly surprises at closing for consumers.

An outline of the new forms was displayed during the webcast along with instructions on to how to complete out various sections of the forms. Shapiro encouraged good communication with those who will fill out the form at the credit union or a third-party provider to ensure consistency.

The webcast concluded noting the industry cost to implement this rule. CFPB's final estimate for the entire industry sits at $1.37 billion.