Real Estate Professionals: What these changes mean for you:
A number of the rules and regulations put forth by the Consumer Financial Protection Bureau (CFPB) will affect you as a real estate professional. New disclosure forms have been in effect since October, 2015 and you will need to be able to explain these new forms to your clients. In addition, these forms will affect the timing of your transactions with a mandatory three-day notification for both the new Loan Estimate Form (replaces the GFE) and the Closing Disclosure Form (replaces the HUD).
Attorneys: What these changes mean for you:
In addition to being able to explain the new forms and new timing involved with the delivery of documents, as an attorney you also face additional challenges if you act as the settlement agent for your clients. Lenders are requiring settlement agents meet new requirements due to the increased risk they are now subject to under the scrutiny of the CFPB. For example, lenders will require all Non-Public Personal Information (NPPI)be delivered via encrypted emails. In addition, many major lenders have already stated they will start to generate and deliver the Closing Disclosure forms as of August 1st and require agents they work with to be registered with certain platforms like Closing Insight (for the secure exchange of closing documents). If you currently act as the settlement agent for your real estate transactions and aren’t caught up on all of the changes that will affect our industry, call us today and setup an in-office presentation or dial-in into one of our many upcoming webinars.
The New Forms:
The New Timeline:
New Lending Disclosure Timeline Infographic
Click Here for other helpful graphics that explain the new timing rules
What Items Can Change the APR?
Resources
CFPB: Know Before You Owe: Mortgage Fact Sheet
A Guide to the Loan Estimate and Closing Disclosure Forms