As we look forward to a new year we are reminded that the new Consumer Disclosures will become mandatory in August.
Those of us in the title industry have already started gearing up for the changes by updating our computer hardware if needed so that our computers are able to handle the new software, attending training and working with our software providers and our IT providers to ensure that our updates will be ready for install in time for the August 1 deadline.
How will the changes affect you and your client? What can you expect to see in the months to come?
As in 2010 when the "new" HUD became mandatory you will likely find
- the need for you, the Realtor, to attend additional training sessions
- different requirements by lenders relating to underwriting and approval guidelines
- a need to work very closely with your industry partners, especially your lenders and title/settlement service providers
What can consumers expect?
- buyer's title and settlement services fees will go up.
- you will likely start seeing a seperate fee to sellers for a seperate "closing" or "settlement" fees due to required use of a seperate HUD for sellers.
- buyers and sellers will need to be prepared for that final walkthrough the WEEK before closing not the DAY before closing
While it may sound like none of this is "consumer friendly" the intent of the new rules and the use of the new forms is to make consumers more aware of the cost of borrowing and to give the consumer more choice.
Consumers and real estate professionals will benefit by the use of the new Consumer Disclosure in many ways, most importantly, the end of that last minute call to the borrower telling them what they need to bring to closing and the end to the same day " final walk through". The new rules are complex but they will actually make it easier on all of us to experience a smooth and pleasent closing without those last minute crisises cropping up.
As we get closer to the mandatory use of these new disclosure forms it is becoming more clear that those of us in the real estate industry need to start now familiarizing ourselves with the new rules, the new forms and the new way in which we need to meet the needs of the consumer.
I will do all that I can to share information as it becomes available and look forward to hearing from all of you with your question and concerns relating to the new Consumer Disclosure forms.