The Consumer Financial Protection Bureau (CFPB) was created to provide a single point of accountability for enforcing federal consumer financial laws and protecting consumers in the financial marketplace. Their purpose is to make consumer financial markets work for consumers, responsible providers, and the economy as a whole. They protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law. The aim is to arm people with the information, steps, and tools that they need to make smart financial decisions.
The CFPB issued a new rule that combines mortgage disclosures previously established by the Truth-in-Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) into a single rule effective October 3, 2015. The TRID Rule combines four existing disclosures that are required under the TILA and the RESPA for most real property-secured closed-end credit transactions. To help improve consumer clarity and promote industry compliance with TILA and RESPA initial and final disclosures, the Good Faith Estimate (GFE) and initial Truth-in-Lending Disclosure will be replaced by the three-page Loan Estimate. The HUD-1 Settlement Statement and final Truth-in-Lending Disclosure is being replaced by the five-page Closing Disclosure.