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14
New National Mortgage Process May Slow Real Estate Transactions
A new TILA RESPA Integrated Disclosure (TRID) rule went into effect from the Consumer Financial Protection Bureau (CFPB) requiring new disclosure forms and longer timeframes to approve documentation during the lending process. For example, the closing disclosure (CD) must be provided to a client three days before closing. This means that closings will be pushed back a) if the paperwork is not correct, b) if the paperwork is not provided in a timely manner or c) if certain changes are made to the annual percentage rate (APR) or loan product. Pushing back a closing date to a buyer or seller could mean that they have nowhere to stay as people often plan their housing (and moving dates) around the closing. Also, this new rule makes it mandatory for people to take seven business days from the time of receipt of the Loan Estimate (LE) and closing. Of course, this could also cause closing dates to be pushed back. Both the CD and LE replace documents that were used previous to the October 3 deadline. The LE replaces the Good Faith Estimate and the Truth in Lending. The CD replaces the HUD1 Settlement statement. "Now, more than ever, you want to be careful in selecting your real estate partner," said Jane Schneider, president of Ruhl Mortgage. "Look for a Realtor and a Loan Officer who understand the new rules and can help you easily navigate the process of buying or selling your home." You can help avoid any delays in your real estate transaction by following these tips:
- Partner with a real estate, loan officer and attorney who understands the new rules and can navigate them
- Give your loan officer any documents that are necessary to complete the loan as soon as possible
- Upon receipt of the Loan Estimate (LE), take time to ask questions and understand it to avoid any last-minute changes
- Start the home inspection process as early as you can
- Schedule your final walk-through well before the closing disclosure (CD) is issued
Most of all, you should have a plan in case your transaction gets delayed. For more information, visit www.ruhlmortgage.com or call 563-441-1862
