As part of the upcoming process of implementing integrated disclosures, a new booklet has been released that will replace one that is currently in use.
The new booklet is part of the transition from current disclosures required by the Truth In Lending Act and the Real Estate Settlement Procedures Act to integrated disclosures.
It will replace the
Settlement Cost booklet that is currently required by RESPA on Aug. 1 when the integrated disclosures become mandatory. The outgoing booklet was developed by the Department of Housing and Urban Development.
The Consumer Financial Protection Bureau unveiled the new booklet Tuesday as part of its Know Before You Owe initiative.
Entitled Your Home Loan Toolkit, the booklet is intended to guide prospective borrowers through the process of buying and financing a home.
The booklet includes a step-by-step guide explaining the nature and costs of real estate settlement services, defines what affordable means and helps consumers find the best mortgage.
Interactive worksheets and checklists are featured, as are research tips and tips about having discussions with lenders.
It’s also designed to help consumers better understand the new Loan Estimate and Closing Disclosure forms.
An interactive version of the booklet that enables consumers to complete text fields, check boxes and save the completed forms is online at
“We are releasing this toolkit well in advance of the effective date to help the mortgage industry come into compliance with the new rules,” CFPB Director Richard Cordray stated in the announcement.
