What Financial Institutions Need to Know Right Now about RESPA-TILA
Securian helps clients avoid Trips, Traps and Quirks in new federal loan regulations
ST. PAUL, Minn.--(BUSINESS WIRE)--The historic changes in mortgage loan disclosures mandated by regulations issued by the Consumer Financial Protection Bureau (CFPB) are one year away, but Securian Financial Group advises its financial institution clients to start getting ready now.
“Our clients will find a broad, plain-English overview of the new rules in each edition of our Regulatory Update newsletter.”
Securian offers lenders a guide for understanding and complying with the 1,888 pages of changes to the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) provided by the CFPB. The integrated RESPA-TILA disclosures will fundamentally change the disclosures that consumers receive when taking closed-end mortgages.
“Understanding the many ways in which these changes will affect day-to-day loan operations – and implementing those changes – is a huge undertaking,” said Jacquelyn Philpot, manager, Loan Document Services, Securian Financial Group. “Our clients will find a broad, plain-English overview of the new rules in each edition of our Regulatory Update newsletter.” Securian also offers online seminars where participants can ask questions during the presentations.
The new rules apply to closed-end mortgages secured by real property and requirements regarding loan forms, disclosures and timing are very specific. Securian’s EasyGuides show financial institutions how to name, structure and complete the forms.
Trips, Traps and Quirks
Securian also delivers a list of five TAQs (Trips, Traps and Quirks) lenders should be aware of as they plan their strategies for implementing the new loan forms. They include:
- Substantive legal research about interaction between state and federal foreclosure laws
- New Dodd-Frank Act disclosures, loan form fields, and calculations
- Formatting and programming trips and traps
- Disclosing optional debt protection or credit insurance
- Elimination of the Fed Box payment schedule
“Our financial institution clients can look to us for help understanding these comprehensive new rules,” said Catherine Klimek, senior counsel. “We will send them a steady stream of information that explains in detail what they need to do to comply. Our first piece of advice is that they start preparing now: August 1, 2015 is less than a year away!”
Securian Financial Group is one of the most highly-rated US insurance company groups and the financial strength of its member insurance companies provides security and value for clients. Through its member insurance companies, Securian offers insurance, debt protection, loan documents and related marketing services to more than 4,000 US financial institutions. Securian Financial Group is the holding company parent of a group of companies that offer a broad range of financial services.