New Mortgage Rules 2015

Posted by Professional Realty on Tuesday, April 14th, 2015 at 8:33am.    3038 Views

Consumer Financial Protection Bureau –

New Mortgage Rules 2015

CFPB new mortgage rules, CFPB new mortgage rules 2015New rules are going into effect this August 1st, and enacted to make mortgage shopping easier but also to better protect consumers from expensive surprises.

What Realtors and Buyers Need to Know

Buyers should expect more stringent underwriting requirements under the Ability to Repay / Qualifying Mortgage Rule. Realtors will have to be ever more on-the-ball coaching clients on their credit and debt-to-income ratios. Lending policies have relaxed over the last year, but this "tightening up" means working a bit harder to get qualified.

A couple of lovely things that accompany these changes are much better transparency, easier-to-understand document formats. Mills, fees and points will be clearer for the consumer and though underwriting is stricter, in many cases, the new rules ban pre-payment penalties.

Bookmark this post if you like for future reference when August draws nearer.

The New Loan Estimate & Closing Disclosure Forms

As mortgage and finance is at the heart of the lion's share of transactions, Realtors will need to familiarize themselves with and be able to walk clients through the new forms. The new rules will affect how you complete transactions with regard to timing and the introduction of a mandatory three-day notification for the new Loan Estimate form and Closing Disclosure form.

The changes are part of the Know Before You Owe project at the CFPB, here you can compare the forms and learn more about it.

Buyers, understand mortgage fraud happens all the time and innocent people get caught up in it, devastating lives. If you're reading this, you've reached a point where you're considering pursuing a home purchase with a mortgage. Protect yourself from mortgage fraud.

You may also benefit from more Mortgage and Finance articles, Buyer's topics, or visit our First Time Home Buying Resource Tool Box.

2 Responses to "New Mortgage Rules 2015"

Angeline wrote: Greetings from Tennessee! Thanks for sharing this info on the new forms and procedures. I skim a lot of posts and articles to stay on top of things for my real estate business and just wanted to say I appreciate posts that keep us Realtors on top of the game. Not sure I'm happy about the new time constraints, but hope all is well in Ohio!

Posted on Tuesday, April 21st, 2015 at 1:22pm.

Greg Hancock wrote: Hiya Angeline, back at you! Thanks for the comment. All is well in Ohio, a slow and steady climb up, but we're luvin' it here. I'm glad you found the article useful. I placed a link about this comment to the Realtor Tips section of our blog in case you'd like to explore more topics helpful for real estate agents. Cheers!

Posted on Tuesday, April 21st, 2015 at 1:52pm.

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