IMPORTANT- New Changes coming October 3rd
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> **VERY IMPORTANT**
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> There are new changes coming to regulations in the Mortgage Industry. These changes will take effect on any new loans originated on or after October 3rd, 2015. These changes will affect all aspects of a mortgage transaction, including the Lender, Borrower, Real Estate Agents, and Attorneys.
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> Congress enacted Section 1032(f) of the Dodd-Frank Act. This required the Consumer Financial Protection Bureau to propose regulation that combines the RESPA and Truth in Lending disclosures.
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> The goals of the New Rule are:
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> 1. Make it easier to use mortgage disclosure forms.
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> 2. Improve Consumer Understanding.
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> 3. Aid Comparison Shopping
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> 4. Prevent “surprises” at the closing table.
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> Beyond the impact CFPB enforcement will directly have on real estate agents, there will be additional considerations that will impact daily practice.
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> 1. New Loan Estimate Form
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> -This document will replace the Good Faith Estimate and early TIL disclosure
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> – must be delivered to the consumer at least 7 days before closing, and within 3 days of loan application submission.
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> 2. New Closing Disclosure Form
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> – This document will replace the HUD-1 and final TIL disclosure.
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> – Must be delivered to the consumer at least 3 business days prior to the date of the closing. This means no loan can close until the minimum waiting period of 3 days has surpassed, upon the borrower receiving receipt of the New Closing Disclosure Form. Current regulation allows a borrower to close up to the same day of receiving the HUD-1.
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> *** Bottom Line : Closings will take a minimum of 10 days now and last minute changes will be kept to clerical in nature. In other words, the days of “lets get this closed tommorow” are completely over.
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> The new closing disclosures apply to nearly all types of consumer mortgages except the following:
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> 1. HELOC
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> 2. Reverse Mortgages
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> 3. Mortgages secured by mobile homes or dwellings not attached to property
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> In Summary, please be prepared for these regulations to take effect on OCTOBER 3RD, 2015.
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> Should you have any questions or inquiries, please do not hesitate to contact me.
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> Thank You!
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> Dominic DiGrazio | Branch Manager
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> Residential Home Funding Corp.
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> 60 Route 46 East, 2nd floor | Fairfield, NJ 07004
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> Main: (973) 575-1550 ext. 10 | Toll Free: (844)-524-1026
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> Cell: (973) 356-5333 | Fax: (973) 575-1551
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> NMLS # 204838 | Company NMLS # 34973
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> [email protected]
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> www.rhfunding.com
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> NJ- Licensed by the NJ Department of Banking and Insurance – License # 9964632
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> NY- Licensed by the New York State Banking Department- License # B500689
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> PA- Licensed by the Pennsylvania Department of Banking – License # 20875
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> FL- Licensed by the Florida Office of Financial Regulation #MLD388.
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