CFPB, TRID Changes are Good for Buyers
With sweeping changes within the lending industry on the horizon, lenders, settlement companies, Realtors and anyone even remotely interested in the world of real estate have their collective pens poised to take notes. The back quarter of 2015 will be nothing less than a hands on course in how the Feds play a large part in the life of a consumer, like it or not.
The majority of the upcoming changes, implemented by the Consumer Financial Protection Bureau (CFPB) will greatly benefit both buyers and sellers. There will be no more of the rush to scan final numbers before gathering around the closing table. The new Closing Disclosure Law allows three full days to review and ask questions on the final loan paperwork.
While we have all preached the importance of having not just a fantastic, enthusiastic, seasoned Realtor by your side, prospective buyers and sellers should bear in mind, as these sweeping changes are executed, to add "educated" to the list of qualifications as well. Puzzled? You should be...your current racing thoughts may include, "Shouldn't my lender brief me on changes and then we'll be golden?"
We mentioned the Feds were involved right? This isn't a simple swap of a document number or two, consider this an overhaul of the way the onset, as well as, the closing of your transaction is handled. The nailing down of timelines both during the initial writing of the contract and moving toward the closing table will be no less than complicated than a New York Philharmonic Orchestra compilation. Your educated Realtor will serve, more than EVER before as an integral intermediary guiding your way toward the sale/purchase of your home.
The implementation of several new combined forms, which will be covered in depth in a separate, upcoming blog (so stay tuned), coupled with the fact that the delivery of the final figures prior to closing will change drastically (see the 3 day review period above), lenders, Realtors, and settlement agents will be rubbing shoulders FAR more often than we're accustomed to.
A reliable, educated Realtor with the same caliber lenders & settlement agents at hand will weather even a Cat 5, Federal Bureau sized storm. The changes are expected to make landfall around October 3rd. Stay tuned for more updates!