TILA-RESPA Integrated Disclosure
If you are buying a home & getting a mortgage to do so, or if you are selling a home to a buyer that needs mortgage financing, The Consumer Finance Protection Bureau (CFPB) has instituted new rules designed to protect the consumer effective Oct 3, 2015. These new rules can significantly impact the closing process.
The buyer must now receive and review a new form called the Closing Disclosure no later than 3 days prior to settlement. This review period may NOT be waived & if they don't have it in time, the closing WILL be delayed.
If changes are needed to the Closing Disclosure, the 3 business day clock may start over depending on the change. Changes to the type of loan, last minute fees not on the original Loan Estimate (generated when you apply), a change to the APR (annual percentage rate), or addition of a pre pay penalty are examples of what would constitute a change to the CD and push the closing back. Thirty day settlements are a thing of the past & pre-settlement walk-throughs will need to be done 3 days prior rather than the day of settlement which provides its own set of challenges.
Sellers, to minimize the possibility of a closing delay, make sure your home is in the same condition at the walk through as it was when it was purchased to avoid any final disputes.
Buyers, make sure you pick a local, reputable mortgage company that is up to speed with these new rules & get your documentation to them asap!
For both buyers & sellers, working with a full time Realtor affiliated with a reputable company that has the resources to insure the integration of these new rules will be seamless.
Trident Mortgage & Trident Land Transfer are up to speed on all these changes & will guarantee the buyer will receive the CD 3 days prior or will credit the buyer. Check out Tridentland.com for more information.