Recent Changes to the Truth in Lending Act and the Real Estate Settlement Procedures Act

By Avi Naider

In 2008, the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) both experienced modification, with new regulations taking effect in 2009 and 2010. The changes to TILA included new instructions on how to determine and verify repayment ability for high-rate loans, expanded disclosure requirements, a mandatory seven-day waiting period between the date a buyer receives a truth-in-lending statement and the closing of the loan, and tighter restrictions on fees. The RESPA changes affected numerous types of disclosures, including the Good Faith Estimate and Department of Housing and Urban Development settlement statements. Together, the new changes have created a great deal of work for compliance teams at lenders small and large.

About the Author

In addition to serving as President and CEO of ACES Risk Management Corp (ARMCO), Avi Naider writes about changes in mortgage compliance and technology for several publications. Before joining ARMCO, Mr. Naider founded an Internet advertising company and worked for the Boston Consulting Group as a strategic consultant.

Advertisements
This entry was posted in Uncategorized and tagged , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s