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New Loan Disclosures
June 9th, 2015 9:35 AM

Barbara's Blog:

Florida realtors have been informed that effective August 1, 2015, new rules go into effect to combine the Good Faith Estimate and the initial Truth In Lending (TIL) disclosure into one "Loan Estimate" and combine the HUD-1 Settlement Statement and the final TIL disclosure into one single "Closing Disclosure."  The Consumer Financial Protection Bureau (CFPB) refers these as the "Know Before You Owe" disclosure forms.

Because of these new requirements, it will most likely take longer to close a sale involving mortgage financing, and contracts should allow 45 to 60 days to final closing.  These loan modifications will apply to most closed-end consumer mortgage loans.

As part of the new rules, the lender must give the loan estimate to the buyer within three business days after the lender receives a completed application from the buyer.  Then the lender or closing agent must give the buyer the Closing Disclosure at least three business days prior to closing. 

 Most buyers, sellers and real estate agents are familiar with the current HUD-1 statement, but it will now be combined with these new disclosures that must be reviewed by all parties involved in the transaction prior to closing. 

PLEASE NOTE:   There will be no Blog posting next week to due vacation!

Posted in:Real Estate
Posted by Allen Doeringer on June 9th, 2015 9:35 AMPost a Comment

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