How the new TILA-RESPA changes effect notaries

A major change in the mortgage lending industry will take effect in August of 2015. The Consumer Financial Protection Bureau (CFBP)amended requirements for the disclosures to borrowers. Lenders in the past have been required to provide disclosures to the borrowers when the loan application is submitted for new home purchases and re-finances. The borrower receives a Good Faith Estimate (GFE) and a Truth and Lending Disclosure Statement (TIL). When the closing takes place the borrower then receives a HUD-1 Settlement Statement (HUD)and a final TIL. As of 8-1-2015 those requirements are changing now when a loan application is submitted the borrower will receive the new Loan Estimate (3 pages) it replaces the GFE and the TIL. The new Loan Estimate must be sent to the borrowers within 3 days of submitting the loan application. At closing the new Closing Disclosure (CD) (5 pages) replaces the HUD-1 settlement statement and the final TIL and it must be delivered to the borrower 3 days prior to the closing appointment. That is great news for Notary Signing Agents, we should get the loan packages a few days before closing instead of at the last minute enabling us to schedule more closings. Also we will still see the old HUD and TIL forms for Home Equity Lines of Credit, Reverse Mortgages, Mobile Home Loans and any loans that have originated prior to 8-1-2015. Hopefully this will be a smooth transition for all of us. Sincerely, Lisa Scanlon, CSA