Big Changes Are Coming to the Real Estate Market

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I have some important news for anyone and everyone that's planning on entering the real estate market soon. There are changes coming to the market in order to make buying a home easier for the consumer and for the lender, but until everyone figures out how to handle these new scenarios we'll have to be patient and utilize good communication.

On October 3rd, changes coming to the TILA-RESPA Integrated Disclosure (TRID) will affect everyone involved in the real estate industry, from consumers to Realtors to lenders.The Consumer Financial Protection Bureau (CFPB) issued a final rule amending regulations the Truth in Lending Act as well as the Real Estate Settlement Procedures Act.

So, what does this mean for you? The TILA-RESPA rule consolidates four disclosures for closed and credit transactions secured by real property into two different forms.

One of these forms is a loan estimate that must be delivered or placed in the mail no later than the 3rd business day after receiving the consumer's application. A closing disclosure must be provided to the consumer at least three business days prior to consummation.

These new disclosures must be provided by a creditor or mortgage banker that receives an application from a consumer for a closed end credit transaction. However, creditors will still be required to use the current Good Faith Estimate, HUD 1 and Truth in Lending forms for applications received prior to August 1, 2015. After that date, these forms will no longer be used.

One thing that WILL NOT change is your loan approval process. These changes are really only going to affect you during the closing period.

Please don't hesitate to contact us with any questions about this issue. We understand that it may seem a little confusing or overwhelming. We would be happy to clear up any misconceptions that you may have!