NEW TRUTH-IN-LENDING DISCLOSURE COMING SOON!Date: 14th January, 2011 On September 24, 2010 The Federal Reserve Board promulgated an interim rule regarding the Mortgage Disclosure Improvement Act (MDIA) of 2008, which amended TILA. The interim rule requires creditors extending consumer credit secured by real property or a dwelling to disclose certain summary information about interest rates and payment changes, in a tabular format, as well as a statement that consumers are not guaranteed the ability to refinance their transactions in the future. This rule becomes effective for all applications taken on or after January 30, 2011. Your ProClose system will be ready before the effective date! We are finalizing updates to our system to provide for the required changes to the payment schedule. To assist you in preparation, next week we will send you an early release guide displaying the different examples one can expect on the new Truth In Lending (TIL) disclosure when entering loans into the ProClose System. There are no upcoming changes to how you input data, nor will you have to manually select which payment schedule is displayed. Only the Payment Summary on the TIL will be different. The new TIL form ID is AADIP1. We look forward to making this change easy for you. Early release guide coming soon! Compliance Department |