Good Faith Estimate (GFE), Truth-in-Lending (TIL) and HUD-1 form changes

The mortgage industry is making big changes again. In an effort to help Consumers better understand the key features, cost and risks of the mortgage loan for which they are applying, the disclosure forms are being revamped.

These changes titled the TILA-RESPA rule are effective as of August 1, 2015.

You can read more about this on the the Consumer Financial Protection Bureau (CFPB) website: www.consumerfinance.gov/regulatory-implementation/tila-respa/

Below are a few excerpts from the Consumer Financial Protection Bureau website:

“First, the Good Faith Estimate (GFE) and the initial Truth-in-Lending disclosure (initial TIL) have been combined into a new form, the Loan Estimate (LE). Similar to those forms, the new Loan Estimate (LE) form is designed to provide disclosures that will be helpful to consumers in understanding the key features, costs, and risks of the mortgage loan for which they are applying, and must be provided to consumers no later than the third business day after they submit a loan application. Second, the HUD-1 and final Truth-in-Lending disclosure (final TIL and, together with the initial TIL, the Truth-in-Lending forms) have been combined into another new form, the Closing Disclosure (CD), which is designed to provide disclosures that will be helpful to consumers in understanding all of the costs of the transaction. This form must be provided to consumers at least three business days before consummation of the loan.”

“The forms use clear language and design to make it easier for consumers to locate key information, such as interest rate, monthly payments, and costs to close the loan. The forms also provide more information to help consumers decide whether they can afford the loan and to facilitate comparison of the cost of different loan offers, including the cost of the loans over time.”

Hopefully these changes will help ease the confusion of the old disclosures.

David Mully has been in the mortgage industry for 26 yrs. He writes for a national mortgage website: www.mortgageloan.com/contributors and is the President and CEO of Lender Insider. He formerly worked as a mortgage loan officer for several years as well as in the business-to-business sector of the mortgage industry. He also wrote a column in several newspapers and online for more than 6 yrs. titled “Mortgage Search”. His Blog can be accessed on his website:lenderInsider.com

Published by

David Mully

Real Estate Industry Marketing and Consulting. Lender Insider was founded in 1999 by David Mully and is based in Michigan. Dave started off as a mortgage loan officer in 1991. He formerly owned a successful Mortgage Rate Table publisher national website: rateupdate.com, along with 50 State mortgage related websites. Lender Insider has experience with Real Estate Software Platforms that improves customer communications. Social Media Marketing, lead generation, mortgage originations, sales, business development, blogging, writing, business texting and compliance. Experience with both the Retail Origination side and the B2B side of the Mortgage Industry.

2 thoughts on “Good Faith Estimate (GFE), Truth-in-Lending (TIL) and HUD-1 form changes”

  1. I find it refreshing to see a lender dedicated to educating clients regarding the required disclosures. As a consumer these disclosures are key in protecting individuals from fraud, unfairness, and discrimination. Mr. Mully, thanks for the informative blog.

    thanks,
    Steve Williamson

Leave a Reply

Your email address will not be published. Required fields are marked *