In case you missed the big announcement last week…the CFPB has issued the long awaited TILA-RESPA final rule.
There will be much more to come in future blog posts about this rule but here are a few highlights so that you can rest easy over the holidays.
- The final rule combined the early Truth in Lending statement and the Good Faith Estimate into a new Loan Estimate form. It also combined the final Truth in Lending statement and the HUD-1 settlement statement into the new Closing Disclosure form.
- The final rule does NOT change the definition of the finance charge (i.e. no all-in APR). However, the CFPB did say they were going to review this issue in the future.
- Click here to read the CFPB’s summary of the new rule and click here to learn more about how the final rule differs from the proposed rule.
The most important thing to know about this rule is that it will be effective on AUGUST 1, 2015. So discussing this rule over the dinner table can wait until after the holidays.
Have a great Thanksgiving!