For this week’s newsletter, I wanted to highlight the upcoming CFPB changes that will occur on August 1st, 2015. I have some brief details and then have provided a link to a video (5-6 mins. long) which details some of the forms that will be replaced and closing timeframes. I hope you all find this useful information. We have five (5) months to prepare for this adjustment. Most of the adjustments will be on the lending side. But, for realtors there are 5 keys changes to keep in mind:
- Be able to explain the new Loan Estimate and Closing Disclosures – these two forms are replacing the GFE, HUD-1 and TILA forms
- Be aware that closing time frames will be impacted – This is most important. Realtors, as of Aug 1st, should allow for an extra 15 days for the closing time period. Keep this in mind when writing the sales agreements.
- Title fees may need to be adjusted at Closing and explained.
- Certain line numbers have been removed and now there will be 7 fee areas on the Disclosure.
- Your clients will likely receive more than one Closing Disclosure.
In the coming months, I will detail these changes for you a little more. But, I just wanted to put this on your radar to start understanding the impact these changes will have.
Here is the link to the video: