Effective October 3, 2015 the new TILA/RESPA rules came into effect. These new rules were designed with consumers in mind. Under the new rules the Loan Estimate forms will clearly set forth the terms of the proposed transaction to help the borrower determine whether they would like to proceed with the transaction. Next, consumers will be given their Closing Disclosure early and before closing on a home purchase or refinance, consumers must receive a copy of their Closing Disclosure at least 3 business days prior to closing so if they have questions, their Loan Originator can provide them with additional information. The format of the Closing Disclosure will also mirror the Loan Estimate to make comparison easy.
TILA is the Truth in Lending Act
RESPA is the Real Estate Settlement Procedures Act.
Combined the TILA/RESPA Integrated Disclosure rule, is also known as TRID
As of October 3rd, the Closing Disclosure is the new document that replaces the HUD-1 and the final TILA disclosure.
CFPB: The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government responsible for consumer protection in the financial sector. Mandated by Dodd Frank, Congress established the CFPB to protect consumers by carrying out federal consumer financial laws. Other functions of the CFPB include researching consumer behavior, to monitoring financial markets for new risks to consumers, and promoting financial education.
SSAE 16 formerly SAS 70
Stands for Statement on Standards for Attestation Engagements No. 16
SOC (Stands for Service Organization Controls) SOC 1 & SOC 2 reports focus solely on controls at a service organization and specifically address the ongoing six key system attributes: Security, availability, processing integrity, confidentiality, privacy and financial reporting.
Truth in Lending Act
The Truth in Lending Act (TILA) of 1968 is United States federal law designed to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.
Real Estate Settlement Procedures Act
Real Estate Settlement Procedures Act (RESPA) was designed to protect potential homeowners and enable them to become more intelligent consumers. RESPA requires that lenders provide greater amounts of information to prospective borrowers at certain points in the loan settlement process.