To break it down, TILA stands for the Truth in Lending Act and RESPA stands for the Real Estate Settlement Procedures Act. The TILA/RESPA integrated disclosure rule or “Know before you owe” as it is sometimes referred to began October 3, 2015 and was created in order to harmonize and consolidate disclosures and regulations. It essentially reduced the disclosures a borrower would receive from four to two. The new two documents are the LE or Loan Estimate and the CD or Closing Disclosure. The LE replaced the Good Faith estimate and the initial Truth In Lending Disclosure. Your lender must provide you the LE within 3 business days of receiving your application. The CD replaced the HUD-1 Settlement Statement and the Final Truth in Lending Disclosure and your lender must provide you the CD 3 business days before your loan signing. I’m Stewart Brown, a licensed Mortgage Loan Originator in Palm Springs, California here to simply topics in Real Estate and Mortgage Lending. Please, like, share, follow and subscribe!
