![]() The purpose of the integration was to streamline the process and ensure that the disclosures are easy to read and comprehend so that consumers can “understand the costs, benefits, and risks” associated with mortgage loan transactions, in light of the “facts and circumstances.” 12 U.S.C. ![]() In 2010, the Dodd Frank Wall Street Reform and Consumer Protection Act (the Dodd Frank Act) created the Consumer Financial Protection Bureau (CFPB), consolidated the consumer protection functions of the above-federal agencies in the CFPB, transferred rulemaking authority under the statutes to the CFPB, and amended section 4(a) of RESPA and section 105(b) of TILA requiring CFPB to issue an integrated disclosure rule, including the disclosure requirements under TILA and sections 4 and 5 of RESPA. These disclosures have in the past been enforced by multiple federal agencies (the Federal Reserve Board, Housing and Urban Development, the Office of Thrift Supervision, the Federal Trade Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the National Credit Union Administration) and provided to consumers on multiple forms with sometimes overlapping information (the Truth in Lending disclosures, the Good Faith Estimate, and the HUD-1 Settlement Statement). The regulations were designed to protect consumers by disclosing to them the costs of a mortgage loan (TILA) and the cost of closing a loan transaction (RESPA). These regulatory disclosure requirements arise from two statutes – the Real Estate Settlement Procedures Act of 1974 (RESPA) and the Truth In Lending Act (TILA). ![]() Residential mortgage lenders have long been required to disclose to their borrowers (i) the cost of credit to the consumer and (ii) the cost to the consumer of closing the loan transaction.
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