On March 31, the CFPB released a Small Entity Compliance Guide for its integrated disclosure rule for the Truth in Lending (TILA) and Real Estate Settlement Acts (RESPA).  The CFPB issued the final rule in November to integrate the initial and final mortgage loan disclosures under TILA and RESPA. The final rule appeared in the December 31, 2013 Federal Register, and the rule becomes effective August 1, 2015.

The CFPB’s guide for the TILA-RESPA rule emphasizes that creditors may not use the new integrated disclosures prior to the rule’s effective date, August 1, 2015.  Instead, creditors should follow the current disclosure requirements under Regulations X and Z, and use the existing forms for applications received before the effective date.

The Guide includes 17 sections, which provide an overview of the rule and the scope of transactions it covers, as well as provisions regarding the rule’s:

  • record retention requirements;
  • initial disclosure (loan estimate) requirements; and
  • closing disclosure requirements

Regarding initial disclosures, the Guide sets forth the requirements for delivery, content, and revisions, and the limits on which the amounts disclosed initially may increase.  The guide likewise sets for the requirements for delivery, content, and revisions of the final, closing disclosure requirements.

The CFPB Guide also covers two additional disclosure requirements for transactions not covered by the integration rule.  These are (1) the escrow closing notice for cases in which a required escrow account will be terminated, and (2) the disclosure of the lender’s applicable policies regarding acceptance of partial payments that must be included in a mortgage transfer notice.

The CFPB states that the document is a plain-language guide to the new rules in order to make “the content more accessible for industry constituents, especially smaller businesses with limited legal and compliance staff.”  Although the guide provides a comprehensive overview of the rule, we anticipate that the CFPB will be asked to provide additional significant guidance before the rule becomes effective in August 2015.