CFPB (consumer financial protection bureau)
Consumers buying a home in Texas means taking out a mortgage loan in most cases. The Dodd-Frank Act requires consumers to understand the Truth in Lending Act and Real Estate Settlement Procedures Act disclosures.
Beginning August 1st, 2015 Mortgage Lender, Title Companies and Real Estate Agents in Texas must follow the new CFPB closing disclosures. Unlike the HUD-1 statement it is similar but dumbed down.
Today at our office meeting I learned that buyers will now have to receive the closing documents disclosure three days prior to closing and they must sign off and send back before closing can take place. This is going to be meeting deadlines like we have never seen before. Even if they meet the three day deadline it all depends on days counted, work days including Saturdays are considered however Sundays and holidays are not. Time, Time, Timelines....
Buyers will receive disclosures shortly after they apply for a mortgage and shortly before they close on the mortgage. CFPB involves the people who will be using the new forms—consumers, lenders, mortgage brokers, settlement agents—in helping buyers understand all fees and conditions of a loan.
The new closing documents which are nothing what Texas agents are use to seeing prior to closing is to ensure the Loan Estimate and the Closing Disclosure are easier to use and understand than the existing forms. It will take some getting use to but the biggest hurdle for Texas agents will be meeting deadlines.
Sellers and Buyers will both need be very educated of the delays like amending contracts, changing numbers etc will cause delays since the three day is not optional. Meeting deadlines will lie on our Mortgage Lenders, Title Companies and Agents keeping closes on tract.
Personally I'm not happy about the new changes but I will adapt as I have for years in the industry. I'm very meticulous about time lines and run a tight ship although I can't control every situation I keep our buyers and seller on tract for successful timely closings. This could mean delays so it will be important for Lenders, Title Companies and Agents to work together to satisfy our clients close in a timely manner.
CFPB Beginning August 1st, 2015 what does this mean to Texas REALTORS®? CFPB will integrate existing mortgage disclosure forms to improve compliance and help people understand their loans. Meeting Time frames for Texas Agents.
The CFPB has been brought to you by Bob Ratliff, REALTOR®
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