CFPB Regulations

New Federal Law Puts CFPD in Charge: What This Means for the Florida Real Estate Market

Jul 15 2015

The Dodd-Frank Act, signed into law in 2010, is set to drastically change the nature of closings in the Florida real estate market come August 1st, 2015. The Hud-1 Settlement Statement, the closing document with which buyers and sellers are more than familiar, will be complemented by the new, combined mortgage disclosure form TILA-RESPA (TRID). The implementation of these changes will be overseen by the Consumer Financial Protection Bureau (CFPB). There are several implications of which home buyers and sellers alike should make themselves aware.

From HUD to CFPB

Prior to this development, the Department of Housing and Urban Development (HUD) was in charge of regulating the United States’ residential mortgage industry. Effective August 1 of this year, federal oversight of mortgage banking on a national level will be passed on to the aforementioned CFPB, whose stated mission it is to protect American consumers by creating a fairer marketplace. In response to the multitudes of mortgage fraud scandals of recent memory, the federal government has inserted itself into the mortgage lending arena as a combatant. We invite you to visit our services page to find answers to any questions you might have.

A comprehensive list of the CFPB’s regulations is available online.

The TRID: Combining TILA and RESPA

On the first of August, the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) will fuse into the TRID. The first requires that the bank inform borrowers of pertinent credit terms and other particulars, prior to drawing up the loan. The second demands a potential buyer be provided with any and all details concerning home loans.

In combining TILA and RESPA into the TRID, several amendments to the ways in which buyers and sellers may operate in the real estate market will soon take effect, including:

  • The “good faith estimate” and “truth-in-lending” documents will be replaced by a loan estimate and various disclosures
  • Following the mortgage loan application, lenders will be required to provide borrowers with loan estimates within 3 days
  • Mortgage lenders will also need to provide home loan closing documents within that same time period
  • Title insurance is styled “optional”
  • The passage which had suggested the seller pay the premium for the buyer’s title insurance policy has been stricken

What the TRID Means for Closings

The three day waiting period could impact the time frame within which buyers and sellers want to close a sale. A party who might require the proceeds from a sale in order to place a down payment on his or her new home may not be able to move in when needed. By way of another example, a buyer attempting to juggle the various concerns of managing a move may find him or herself stuck with nowhere to drop off all of those personal effects. The delay could very likely aggravate a whole slew of issues intimately tied to the closing process.

At Marina Title, we keep ourselves abreast of the latest developments affecting you, the consumer. For more information, drop us a line at (305) 901-5628 or reach out to us by email at

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