RESPA change effective date extended to October 3rd

Beaufort County Association of REALTORS® (BCAR) is alerting its members and the public of the alternate effective date for implementation of the changes to the Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA) or TRID (TILA/RESPA Integrated Disclosure). Originally, the changes were slated for August 1, 2015. However, as of late last week the Consumer Financial Protection Bureau (CFPB) issued a proposed amendment which would move the rule’s effective date to October 3, 2015.

“We certainly welcome the extension, but we continue to urge all REALTORS® to be aware of the changes coming in October so that there are no delays at the closing table,” said BCAR CEO Janet Gresham.

Highlights of the new rule include:

• A new loan estimate document which replaces the Good Faith Estimate and the initial Truth in Lending disclosure.

• A new closing disclosure document which replaces and combines the HUD-1 and final Truth in Lending disclosures.

• Loan Estimates must now be given to consumers within 3 business days of applying for the loan.

• Types of loans covered include most closed-end consumer mortgage loans. The rule does not apply to Home equity lines of credit, reverse mortgages, mortgages secured by mobile homes or by dwellings not attached to the property and creditors who make five or fewer mortgage loans in one year.

The South Carolina Association of REALTORS® will be offering members a training webinar on July 23rd to address the RESPA changes. REALTORS® are encouraged to visit screaltors.org/webinar to register.

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