TILA-RESPA INTEGRATED DISCLOSURE

TILA-RESPA

INTEGRATED

DISCLOSURE

Guide to the Loan Estimate

and Closing Disclosure forms

Consumer Financial

Protection Bureau

Version log

The Bureau updates this guide on a periodic basis to reflect finalized clarifications

to the rule which impacts guide content, as well as administrative updates. Below

is a version log noting the history of this document and its updates:

Date

Version

Rule changes

September 2014

1.1

¡ì¡ì Updates to information on who to

contact with questions on the rule

(Section 1.3)

¡ì¡ì Clarification of description of time

periods less than whole years (Section

2.2.2. Loan Terms)

¡ì¡ì Clarification of requirement relating to

provision of appraisals for certain loan

types. (Section 3.6.2. Other Disclosures)

April 2014

2

1.0

TILA-RESPA INTEGRATED DISCLOSURE

Original Document

| VERSION LOG

What¡¯s inside

Version log?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 2

1. Introduction?????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 6

1.1

What is the purpose of this guide??????????????????????????????????????????????????????????? 7

1.2

Who should read this guide???????????????????????????????????????????????????????????????????? 8

1.3

Where can i find additional resources that will help me understand

the TILA-RESPA rule?????????????????????????????????????????????????????????????????????????????????? 9

2. Loan Estimate?????????????????????????????????????????????????????????????????????????????????????????????????????????????10

2.1

2.2

2.3

3

General Requirements???????????????????????????????????????????????????????????????????????????? 10

2.1.1

Issuance and Delivery??????????????????????????????????????????????????????????????? 10

2.1.2

Revised Loan Estimate?????????????????????????????????????????????????????????????? 10

2.1.3

Use of Compliance Guide???????????????????????????????????????????????????????? 11

2.1.4

Rounding???????????????????????????????????????????????????????????????????????????????????? 11

2.1.5

Consummation?????????????????????????????????????????????????????????????????????????? 11

Loan Estimate (page 1)??????????????????????????????????????????????????????????????????????????? 12

2.2.1

General Information?????????????????????????????????????????????????????????????????? 13

2.2.2

Loan Terms????????????????????????????????????????????????????????????????????????????????? 18

2.2.3

Projected Payments?????????????????????????????????????????????????????????????????? 21

2.2.4

Costs at Closing????????????????????????????????????????????????????????????????????????? 27

Loan Estimate (page 2)??????????????????????????????????????????????????????????????????????????? 29

2.3.1

Loan Costs?????????????????????????????????????????????????????????????????????????????????? 31

2.3.2

Other Costs????????????????????????????????????????????????????????????????????????????????36

TILA-RESPA INTEGRATED DISCLOSURE

| WHAT¡¯S INSIDE

2.4

2.3.3

Calculating Cash to Close???????????????????????????????????????????????????????? 42

2.3.4

Alternative Calculating Cash to Close table for transactions

without a seller???????????????????????????????????????????????????????????????????????????45

2.3.5

Adustable Payment (AP) Table???????????????????????????????????????????????? 47

2.3.6

Adjustable Interest Rate (AIR) Table???????????????????????????????????????48

Loan Estimate (page 3)??????????????????????????????????????????????????????????????????????????? 51

2.4.1

Contact Information?????????????????????????????????????????????????????????????????? 52

2.4.2

Comparisons?????????????????????????????????????????????????????????????????????????????? 52

2.4.3

Other Considerations???????????????????????????????????????????????????????????????53

2.4.4

Confirm Receipt????????????????????????????????????????????????????????????????????????? 55

3. Closing Disclosure?????????????????????????????????????????????????????????????????????????????????????????????????????56

3.1

3.2

3.3

3.4

4

General Requirements????????????????????????????????????????????????????????????????????????????56

3.1.1

Issuance and Delivery???????????????????????????????????????????????????????????????56

3.1.2

Revised Closing Disclosure??????????????????????????????????????????????????????56

3.1.3

Use of Compliance Guide???????????????????????????????????????????????????????? 57

3.1.4

Rounding???????????????????????????????????????????????????????????????????????????????????? 57

3.1.5

Consummation?????????????????????????????????????????????????????????????????????????? 57

Closing Disclosure (page 1)???????????????????????????????????????????????????????????????????58

3.2.1

General Information?????????????????????????????????????????????????????????????????? 59

3.2.2

Loan Terms????????????????????????????????????????????????????????????????????????????????? 61

3.2.3

Projected Payments??????????????????????????????????????????????????????????????????62

3.2.4

Costs at Closing?????????????????????????????????????????????????????????????????????????62

Closing Disclosure (page 2)???????????????????????????????????????????????????????????????????64

3.3.1

Loan Costs??????????????????????????????????????????????????????????????????????????????????65

3.3.2

Other Costs???????????????????????????????????????????????????????????????????????????????? 67

Closing Disclosure (page 3)??????????????????????????????????????????????????????????????????? 70

3.4.1

Calculating Cash to Close???????????????????????????????????????????????????????? 72

3.4.2

Alternative Calculating Cash to Close Table For Transaction

Without a Seller ???????????????????????????????????????????????????????????????????????? 74

TILA-RESPA INTEGRATED DISCLOSURE

| WHAT¡¯S INSIDE

3.5

3.6

3.4.3

Summaries of Transactions?????????????????????????????????????????????????????? 76

3.4.4

Borrower¡¯s Transaction????????????????????????????????????????????????????????????? 77

3.4.5

Seller¡¯s Transactions?????????????????????????????????????????????????????????????????? 81

Closing Disclosure (page 4)???????????????????????????????????????????????????????????????????85

3.5.1

Loan Disclosures????????????????????????????????????????????????????????????????????????86

3.5.2

Escrow Account?????????????????????????????????????????????????????????????????????????88

3.5.3

Adjustable Payment (AP) Table??????????????????????????????????????????????? 89

3.5.4

Adjustable Interest Rate (AIR) Table???????????????????????????????????????90

Closing Disclosure (page 5)??????????????????????????????????????????????????????????????????? 91

3.6.1

Loan Calculations??????????????????????????????????????????????????????????????????????92

3.6.2

Other Disclosures?????????????????????????????????????????????????????????????????????? 93

3.6.3

Contact Information?????????????????????????????????????????????????????????????????? 94

3.6.4

Confirm Receipt????????????????????????????????????????????????????????????????????????? 95

4. Where can I find a copy of the TILA-RESPA rule and get more information

about it???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????96

5

TILA-RESPA INTEGRATED DISCLOSURE

| WHAT¡¯S INSIDE

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