Truth In Lending Act (TILA)

The Dodd-Frank Act requires the CFPB to combine the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) disclosures that applicants currently receive at closing.  Since May 2011, when it released its first prototypes, the CFPB has been working with lenders, consumer groups and others to develop model mortgage disclosure forms that combine the necessary information from both the RESPA and TILA forms into one document.  In July 2012, the Bureau released a notice of proposed rulemaking and collected comments until November 6, 2012.  In addition to the model forms and instructions for completing the forms, the proposed rule includes limits on closing cost increases, changes in the way annual percentage rates are calculated and new recordkeeping requirements relating to the forms provided to consumers.

 The Bureau does not have a statutory deadline by which it must finalize the integrated mortgage disclosure rules, but it is expected that a final rule will be issued over the next year.

Mortgage lenders and brokers