CFPB ANNOUNCES NEW ‘KNOW BEFORE YOU OWE’
MORTGAGE SHOPPING TOOL KIT. YOU MUST GIVE IT TO THE CONSUMER WITH THE TRID STARTING AUGUST 1, 2015
On March 31, 2015 the Consumer Financial Protection Bureau (CFPB) released a new toolkit that guides consumers through the process of shopping for a mortgage and buying a house. The toolkit will help consumers take full advantage of the new Loan Estimate and Closing Disclosure forms that lenders are required to begin providing in August.
The Home Loan Toolkit (designed for web posting and interactivity) is available at:
http://files.consumerfinance.gov/f/201503_cfpb_your-home-loan-toolkit-web.pdf The toolkit provides a step-by-step guide to help consumers understand the nature and costs of real estate settlement services, define what affordable means to them, and find their best mortgage. The toolkit features interactive worksheets and checklists, conversation starters for discussions between consumers and lenders, and research tips to help consumers seek out and find important information.
The toolkit is designed to replace an existing booklet that creditors currently must provide to mortgage applicants. The updated toolkit is designed to be used in connection with the new Loan Estimate and Closing Disclosure forms that will be effective on August 1, 2015. CREDITORS MUST PROVIDE THE TOOLKIT TO MORTGAGE APPLICANTS AS A PART OF THE APPLICATION PROCESS, and other industry participants, including real estate professionals, are encouraged to provide it to potential homebuyers.
The CFPB is also providing an electronic version complete with fillable text fields and interactive check boxes so the consumer can save and print their progress as they work through the toolkit.
The CFPB is providing the toolkit well ahead of the August effective date for the “Know Before You Owe” mortgage disclosure rule to give industry time to order and receive or print the new toolkit and integrate electronic versions into their mortgage origination systems. (cfpb33115)
In easy to understand 28 pages for the consumer! BUT Lenders must give it out commencing August 1, 2015 with the new TILA-RESPA INTEGRATED DISCLOSURE STATEMENT (TRID).
THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. THE AUTHOR MAKES NO CLAIMS ABOUT ITS ACCURACY, COMPLETENESS, OR UP-TO-DATE CHARACTER. NO AUTHOR OR OWNER OF THIS DOCUMENT AND ITS WEBSITE IS ACTING AS YOUR ATTORNEY. LEGAL RULES AND TAX RULES CHANGE FREQUENTLY, THEREFORE, WE CANNOT GUARANTEE THAT ANY INFORMATION CONTAINED HEREIN OR ON A WEBSITE IS ACCURATE OR UP TO DATE. FOR LEGAL ADVICE PLEASE CONSULT AN ATTORNEY.
For over 40 years the attorneys at the Thordsen Law Firm have represented clients in many areas of law, including personal injury, trusts and wills, short sales and foreclosure issues, criminal white collar defense, administrative actions, copyright and trademark protection, bankruptcy, civil lawsuits, as well as real estate matters. Among others we are counsel to buyers, sellers, lenders, realtors, mortgage brokers in California and nationally. We are counsel to state trade associations in California, Nevada and Arizona.
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