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.