New Rules and Regulations of the Consumer Financial Protection Bureau as of August 1, 2015

New Rules and Regulations of the Consumer Financial Protection Bureau as of August 1, 2015

By: Mercedes Hale and Cristen Messina ESQ.

 

 

A new mortgage disclosure rule will become effective on August 1, 2015. 

The new rule is believed to solely affect lenders and closing agents, but the agents do not realize how the changes will impact their practices starting August 1, 2015.

 

The following are some changes that will be in effect:

 

·       The Good Faith Estimate and Initial TILA disclosure will no longer be used.

·       A combined Loan Estimate Form will replace the above forms.

·       The HUD-1 Settlement Statement and the final TILA forms will be replaced by a single Closing Disclosure Form. (Must be given to borrower at least three days prior to the closing)

·       Closing timing will be impacted:  borrowers have 3 days after receiving the disclosure to review contents.

·       Disclosure of title fees will change.

·       New Closing Disclosure will not have line numbers and instead, will have the fees and charges included in seven areas.

·       The Real Estate Agent will be able to walk the buyers/sellers through the all the charges on the Closing Disclosure.

 

4 Ways for Realtors can prepare for changes

 

1.      Learn as much as possible about the CFPB rules and new forms.

2.      Meet with lenders and learn about the more stringent underwriting requirements.

3.      Meet with the closing agents now and find out how they are preparing for the new changes.

4.      Realtors must be proactive from the beginning of the transaction and prepare for the changes ahead of time.

Ainsley Daux
Florida Realty
813-546-1954
Dover Florida Real Estate