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October 1st, 2015 changes are almost here for the Buyers, the Borrowers i.e.: the Consumer via the Truth-In-Lending-Act!(TILA-RESPA)

Posted on Jun 20, 2015 by in Buying, Observations about various subjects | 0 comments

TILA-RESPA Integrated Disclosure rule implementation(Truth-In-Lending-Act)

August 1st, 2015, October 1st, 2015 changes are almost here for the Buyers, the Borrowers the Consumer

There are changes that will go in effect thanks to The Consumer Financial Protection Bureau (CFPB) Some of the changes will be major others just terminology and definition changes.

Here are some examples of terminology changes:

The Lender will now be called The Creditor

The Borrower and the Buyer will be called The Consumer

Initial Truth-in- Lending Statement and Good Faith Estimate will be called Loan Estimate

HUD 1 Settlement Statement and Final Truth-in-Lending Statement will be called Closing Disclosure

The Closing will now be called Consummation!

The purpose of all this is intended to make the Borrowers i.e.: the Consumer’s life easier. If you have bought ‘property’ before, and it was the first time, I am sure you will recall that the documents were confusing and quite overwhelming. There are agents who had a challenge with reading and explaining the HUD-1 forms, because not all agents are present at the closings and many times the Borrowers aka. The Consumer would only sign the documents in the presence of the Escrow Officer. Hence most people involved in the Transaction will welcome these changes.

After reading the “The Closing Disclosure” I find it will be easier for all parties to understand the Terms, even though it is five pages long, the information is geared to simplify previously convoluted documents and data.

Another aspect will be the implementation of “…some Best Practices for all Title and Escrow Companies…” One of those are how to handle Non Public Information (NPI) (I will cover that in detail in an upcoming Post.)

If you are a Lender= Creditor, an Escrow Officer, Title Officer the biggest change will be to have better coordination and communication amongst each other. If you are a Realtor you need to become familiar with the Closing Disclosure Form since the Consumer will have it three days in advance rather than at the Closing Table.

If you are a California Consumer these documents will be sent to you in advance as well prior to signing the Loan Documents allowing you to digest and raise questions and get clarifications to your concerns.

I understand that this will take a bit of time to get used to but the purpose is to protect the Consumer, so we as representatives of the Real Estate Industry needs to embrace these changes and help the Consumer with their largest transaction of their life time and to make it as easy as possible.

If you are a Consumer you should be Thrilled at these changes!

If you would like to watch a five minute video about these changes please click on the enclosed link

Now if you like an in-depth clarification and would like a better understanding of the new rules, with questions and answers, then check out the Government’s Website for the changes here:


If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at me at 310.486.1002 (m) or or visit one of my websites at  I am a pet friendly realtor and I contribute a portion of my commission to local animal rescue organizations.





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