Ellie Mae is publishing a free, 16-page RESPA-TILA FAQ guide to help lenders understand and comply with theIntegrated Disclosure Rule, currently scheduled to go into effect Oct. 3.
The new federal rule from the Consumer Financial Protection Bureau mandates the use of two new disclosure forms to help borrowers better understand the impact of getting a mortgage: a Loan Estimate, which replaces the current Good Faith Estimate and the initial Truth-in-Lending Disclosure; and a Closing Disclosure, which replaces the HUD-1 Settlement Statement and final Truth-in-Lending Disclosure currently used by lenders.
Industry concern over the new disclosures, also known as TRID, has pervaded since they were first proposed two years ago and has gained momentum as this year’s effective date approached.
“The new disclosures, proposed to go into effect on October 3, are the most significant changes the industry has seen. Ellie Mae has been working diligently over the last year to ensure that our software and our clients are ready and it is important to share what we have learned thus far,” said Ellie Mae President and CEO Jonathan Corr. “The new Integrated Disclosure Rule will impact almost everything lenders do. We hope that the FAQ we are publishing will shed light on the grayer areas of the new rule, so that everyone can better prepare.”
The FAQ will be a continuously evolving document and is being written by Ellie Mae’s compliance team. The chapters are based upon commonly asked questions from Ellie Mae training and webinars.
Citing specific language in the 1,888-page Integrated Disclosure Rule, the FAQ includes critical information about when the new disclosures apply, which loans are excluded, and which loans are partially exempted, as well as important definitions and requirements involving the timing of disclosures.
The first four chapters, which include information on Rule Applicability, Definition of Application, and Loan Estimate can be found at www.elliemae.com/RT-FAQ and additional chapters will be added regularly. Users can visit the page and submit their email address for updates as chapters become available.