Sponsored By: Sottile, Hopkins, and Lewis, LLC
As a result of the 2008 financial meltdown, Congress established the Consumer Financial Protection Bureau (CFPB) to govern the residential mortgage loan process. Among its first tasks was the combination of forms provided to borrowers at the beginning and at the end of the loan transaction. For all applications taken after July 31, 2015, mortgage lenders are required to give borrowers a new, three page document called the Loan Estimate.
At the closing of the loan, borrowers will see a new form, called the Closing Disclosure form. This five page document is a combination of the familiar HUD-1 settlement statement and other financial information. A borrower must receive the Closing Disclosure at least three days prior to the closing. If certain figures change on the Closing Disclosure, this may trigger a re-disclosure, ultimately delaying the closing date. Delayed closings due to re-disclosure for consumers purchasing real estate could potentially cause logistical issues with moving. Those of you who have sat at the real estate attorney’s office on the day of closing waiting to close know what a change this will be. There will be a learning curve for everyone involved in the loan closing process so expect some early hiccups along the way.
Sottile, Hopkins & Lewis, LLC’s attorneys have a combined practice experience of more than 70 years and we are here to help with these changes. If you are buying, selling, or refinancing a home, our firm would be happy to guide you through the real estate closing process from start to finish. We look forward to assisting you with your real estate needs.
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