To help ensure fairness in lending and protect consumers, the Consumer Financial Protection Bureau (CFPB) enacted new regulations which include the previous disclosures required under the Truth in Lending Act and the Real Estate Settlement Procedures Act.
Effective August 1, 2015, the CFPB rules are designed to help consumers compare the short and long-term costs of different mortgage options. It applies to everyone involved in any residential real estate transaction, except home equity loans, reverse mortgages and loans on mobile homes.
Redesigned to aid comparison shopping, a loan estimate must now include loan terms, projected payments, closing cost details and estimated cash required to close. This must be provided to potential borrowers within three days of the application. Lenders must provide a final closing disclosure three business days before closing. Additional protections were also put in place, all to further minimize any surprises for the borrower at closing time.
Contact us with any questions or for a copy of our best practices guide.
1. What is the Consumer Financial Protection Bureau?
2. The New Closing Disclosure Explained
3. Changes to the Closing Disclosure Timing
4. Closing Protection Letters & Insurance Policy Comparisons
5. Five Things Escrow Agents Need to Know Before August 2015
6. Five Things Lenders Need to Know Before August 2015
7. Five Things Attorneys Need to Know Before August 2015
8. Five Things Real Estate Agents Need to Know Before August 2015