BIG CHANGES in REAL ESTATE that may AFFECT YOUR Real Estate
closing
GOOD
BYE…old HUD-1 and closing statements.
Starting August 1, 2015, any transaction involving a mortgage will use the new disclosure forms created
by the Consumer Financial Protection Bureau (“CFPB”). The Truth-in-Lending Act/RESPA
Integrated Disclosures (“TRID”) creates timing requirements for disclosures
that lenders need to make to consumers.
What should YOU expect?
·
New closing
disclosures forms and loan estimates.
·
The consumer (buyer) must
receive the new Closing Disclosures must
be received within three business days of closing.
·
CHANGES will require a new Closing Disclosures and another three-day waiting period. For
example… APR changes, loan product changes, delayed inspection of repair, final
inspections on new homes, additional documents and host of others items can
trigger a 3 day delay.
·
Prepare that closings time frame will be longer. They are recommending adding additional 15
days to “normal” closing time frame when a loan is involved.
As REALTORS, we will be
learning how to navigate this change to best educate and guide our
clients. It’s apparent that being timely in all facets of the contract
process is a must. Buyers
need to provide lenders the information requested as soon as possible and sellers need complete any agreed
upon inspection reports or repairs well advance of the closing. For example; CL100 Wood/Pest Report, repairs
required, Certificate of Occupancy and final loan inspections for builders.
Summary… having “all ready and in” place 7
days in advance of the closing date would be the best goal. This would give time just in case a 3 day
waiting period is triggered for any reason.
