KNOW BEFORE YOU OWE – NEW EFFECTIVE DATE ANNOUNCED
The Consumer Financial Protection Bureau finalized the two-month extension of the Know Before You Owe mortgage disclosure rule (also known as the TILA-RESPA Integrated Disclosures rule,) to October 3, 2015. It refers to the upcoming form and rule change where the Truth in Lending (TIL) form and the HUD-1 Settlement Statement (RESPA) will be combined and integrated into a new form called the Closing Disclosure Form. The purpose of the new form is to provide the borrower with a clear and understandable final snapshot of the loan and the costs associated with the loan.
The Bureau decided on this new date believing that both industry and consumers will benefit from a smoother transition and that scheduling an effective date on a Saturday may give the industry time to launch new systems over the weekend.
For more information visit: www.ConsumerFinance.gov