CFPB proposes moving effective date for closing changes to October 3

In late June, the Consumer Financial Protection Bureau proposed a two-month delay to changes to the mortgage-closing process, making the effective date October 3. The CFPB proposal was open for public comment until July 7. Read the CFPB’s proposal on consumerfinance.gov, and stay tuned to texasrealestate.com/closings for the latest news.

Related: New title form required when CFPB rules take effect

A new Texas-specific form called the Texas Disclosure (Form T-64) will be part of the necessary closing documents when CFPB rules take effect. Created by the Texas Department of Insurance, the Texas Disclosure does not replace either the Loan Estimate or Closing Disclosure that will be required by the CFPB. Its purpose is to provide buyers with clear information about the costs associated with title insurance, and provides a more detailed look at title-insurance items that were removed for combined from the  HUD-1. The form also helps the TDI ensure title agents are following the rules for state-mandated pricing of title policies, and includes a signature line that authorizes the title agent to disburse the funds. Title agents must provide the form at the same time as the Closing Disclosure form once the new CFPB rules go into effect.

 


In late June, the Consumer Financial Protection Bureau proposed a two-month delay to changes to the mortgage-closing process, making the effective date October 3. The CFPB proposal was open for public comment until July 7. Read the CFPB’s proposal on consumerfinance.gov, and stay tuned to texasrealestate.com/closings for the latest news.

Related: New title form required when CFPB rules take effect

A new Texas-specific form called the Texas Disclosure (Form T-64) will be part of the necessary closing documents when CFPB rules take effect. Created by the Texas Department of Insurance, the Texas Disclosure does not replace either the Loan Estimate or Closing Disclosure that will be required by the CFPB. Its purpose is to provide buyers with clear information about the costs associated with title insurance, and provides a more detailed look at title-insurance items that were removed for combined from the  HUD-1. The form also helps the TDI ensure title agents are following the rules for state-mandated pricing of title policies, and includes a signature line that authorizes the title agent to disburse the funds. Title agents must provide the form at the same time as the Closing Disclosure form once the new CFPB rules go into effect.