Financing Changes Coming October 3rd

Do you know about the financing changes that are coming on October 3rd?  Here are some Highlights to keep better informed:

bank 2New Loan Estimate Document Created

  • Replaces the Good Faith Estimate (GFE) and initial Truth-in-Lending (initial TIL) disclosure.
  • The new form provides clearer information so that consumers understand the loan terms and estimates of loan and closing costs and to facilitate comparison shopping.
  • The Loan Estimate must be provided to consumers within three business days after submission of loan application.

New Closing Disclosure Document Created

  • Replaces and combines the HUD-1 and final Truth-in-Lending disclosures (final TIL and, together with the initial TIL, the Truth-in-Lending forms).
  • The new form provides clear details about loan charges and features so that consumers can better understand the costs of the transaction.
  • The Closing Disclosure must be received by consumers three business days before consummation of loan.

Timing of Disclosures

  • The Loan Estimate must be given to consumers within three business days of applying for the loan.
  • The Closing Disclosure must be received by the consumer three business days before consummation.

Types of Loans Covered

  • Applies to most closed-end consumer mortgage loans.
  • The rule does not apply to:
    • Home equity lines of credit (HELOCs)
    • Reverse mortgages
    • Mortgages secured by mobile homes or by dwellings not attached to a property
    • Creditors that make five or fewer mortgage loans in one year.

I know this is a lot of information!  As your Real Estate Professional, I will be able to help you through the buying or selling process.  Contact me today!!

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