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 July 2015

Version 1.3

January 2015

1.2

September 2014 1.1

April 2014

1.0

Rule changes

?? Changes to bring guide into alignment with Final Rule issued 7/21/2015 and other technical corrections

?? Permits certain language related to construction loans for transactions involving new construction on the Loan Estimate (Section 2.4.3 Other Considerations)

?? Updates to information on who to contact with questions on the rule (Section 1.3)

?? Clarification of description of time periods less than whole years (Section 2.2.2. Loan Terms)

?? Clarification of requirement relating to provision of appraisals for certain loan types. (Section 3.6.2. Other Disclosures)

Original Document

2 TILA-RESPA INTEGRATED DISCLOSURE | 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 Estimate10 2.1 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

2.2 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

2.3 Loan Estimate (page 2) 29 2.3.1 Loan Costs 31 2.3.2 Other Costs36

3 TILA-RESPA INTEGRATED DISCLOSURE | WHAT'S INSIDE

2.3.3 2.3.4

2.3.5 2.3.6

Calculating Cash to Close 42 Alternative Calculating Cash to Close table for transactions without a seller45 Adustable Payment (AP) Table 47 Adjustable Interest Rate (AIR) Table48

2.4 Loan Estimate (page 3) 51 2.4.1 Contact Information 52 2.4.2 Comparisons 52 2.4.3 Other Considerations53 2.4.4 Confirm Receipt 55

3. Closing Disclosure56

3.1 General Requirements56 3.1.1 Issuance and Delivery56 3.1.2 Revised Closing Disclosure56 3.1.3 Use of Compliance Guide 57 3.1.4 Rounding 57 3.1.5 Consummation 57

3.2 Closing Disclosure (page 1)58 3.2.1 General Information 59 3.2.2 Loan Terms 61 3.2.3 Projected Payments62 3.2.4 Costs at Closing62

3.3 Closing Disclosure (page 2)64 3.3.1 Loan Costs65 3.3.2 Other Costs 67

3.4 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

4 TILA-RESPA INTEGRATED DISCLOSURE | WHAT'S INSIDE

3.4.3 3.4.4 3.4.5

Summaries of Transactions 76 Borrower's Transaction 77 Seller's Transactions 81

3.5 Closing Disclosure (page 4)85 3.5.1 Loan Disclosures86 3.5.2 Escrow Account88 3.5.3 Adjustable Payment (AP) Table 89 3.5.4 Adjustable Interest Rate (AIR) Table90

3.6 Closing Disclosure (page 5) 91 3.6.1 Loan Calculations92 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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