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CFPB RESPA/TILA Rule Reference: 4, Page 18-20, CFPB Detailed Summary of the Rule
Did you know there are certain transactions that the TILA-RESPA rule does not apply to? In fact, all transactions not covered by the TILA-RESPA rule must continue to use the GFE, HUD-1 and Truth-in-Lending disclosures. Here’s a list of those types of transactions:
• HELOCS (home equity line of credits)
• Reverse Mortgages
• Chattel Dwelling Loans — mobile homes or dwellings not attached to property
• Person or entity that makes 5 or fewer mortgages per year
• Cash Deals
• Partial Exemptions associated with Housing Assistance loans for low and moderate income consumers
As you can see, this could be a bump in the road for some businesses, as they’ll need to be able to track and organize which forms need to be used at what time. The right technology can make this process very simple for businesses.
For more information on the impact to the industry and how technology solutions can help your business mitigate them, visit the TilaRespa Knowledge Center.
All information and views expressed or implied are provided without warranty and are only the opinion of Pavaso, Inc. Each participant should seek legal representation for legal interpretation of the ruling and the CFPB directly for final instruction and interpretation. The final rule can be found here.