{"id":1371,"date":"2015-12-07T09:38:47","date_gmt":"2015-12-07T13:38:47","guid":{"rendered":"https:\/\/www.beingbobblog.com\/?p=1371"},"modified":"2015-12-27T22:57:51","modified_gmt":"2015-12-28T02:57:51","slug":"new-mortgage-disclosure-laws-could-delay-your-home-purchase","status":"publish","type":"post","link":"https:\/\/beingbobblog.com\/happy-holidays\/new-mortgage-disclosure-laws-could-delay-your-home-purchase\/","title":{"rendered":"New Mortgage Disclosure Laws Could Delay Your Home Purchase?"},"content":{"rendered":"

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\n\"selling-your-home\"<\/a><\/strong><\/p>\n

Beginning October 3, 2015, home buyers applying for a\u00c2\u00a0mortgage\u00c2\u00a0will receive\u00c2\u00a0new rate and fee quote forms\u00c2\u00a0from lenders.<\/strong><\/p>\n

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These federally required consumer disclosures, which go by the name TILA-RESPA Integrated Disclosures (or TRID), will make it easier for you to understand rate and fee quotes from lenders. <\/strong><\/p>\n

However, they will also slow down your home-buying process.<\/strong><\/p>\n

Lenders must not only deliver these new rate and fee disclosures to you twice during the home loans process \u00e2\u20ac\u201d after application and before closing \u00e2\u20ac\u201d but also must comply with disclosure timing rules in the beginning and end of the loan process.<\/strong><\/p>\n

Speed wins when writing home purchase offers, and this extra time can mean the difference between a seller accepting and rejecting\u00c2\u00a0your offer. <\/strong><\/p>\n

Here\u2019s how to\u00c2\u00a0optimize your timing so you can write offers that will close faster than competing buyers:<\/strong><\/p>\n

Loan estimate disclosure and timing rules<\/strong><\/p>\n

The first new disclosure is called the\u00c2\u00a0Loan Estimate<\/a>. This document\u00c2\u00a0clearly shows your rate quote, loan term, line-item fees, and cash needed to close.<\/strong><\/p>\n

\u00c2\u00a0Before the lender can collect fees for critical next steps in the loan process \u00e2\u20ac\u201d like ordering an appraisal, which your loan can\u2019t close without \u00e2\u20ac\u201d the lender must also obtain your intent to proceed based on the quoted terms.<\/strong><\/p>\n

The Loan Estimate must be given to you within three days of applying for a mortgage. The federal agency that made and enforces the TRID rules \u00e2\u20ac\u201d the Consumer Financial Protection Bureau (CFPB) \u00e2\u20ac\u201d allows for mail or electronic delivery of the Loan Estimate.<\/strong><\/p>\n

If you applied with a lender who\u2019s using mail delivery late on a Wednesday, they would mail your Loan Estimate and intent-to-proceed disclosures Thursday, you might get it Saturday, and they couldn\u2019t collect fees and order your appraisal until they received your consent Monday, which is already day six into the process.<\/strong><\/p>\n

If you applied with a lender who\u2019s using electronic delivery late on a Wednesday, they could deliver your Loan Estimate and intent-to-proceed disclosures for you to consent to online that evening, and they could collect fees and order appraisal that same evening \u00e2\u20ac\u201d\u00c2\u00a0all on the first day of the process.<\/strong><\/p>\n

Closing disclosure and timing rules<\/strong><\/p>\n

The second new disclosure, called the\u00c2\u00a0Closing Disclosure<\/a>, looks almost exactly the same as the Loan Estimate, which makes it easy for buyers to review the closing terms and compare them to the originally quoted terms. It also provides further clarity on closing costs by showing which line item costs are paid by buyer, seller, and third parties.<\/strong><\/p>\n

The lender must provide this document to you at least three days before closing. \u00c2\u00a0The new CFPB disclosure rules don\u2019t allow Sundays and holidays to count in this three-day waiting period, and day one is the day after you get the Closing Disclosure.<\/strong><\/p>\n

For example, if a lender sent your Closing Disclosure on a Wednesday, the three-day waiting period is Thursday, Friday, Saturday. Then they can fund your loan and close your home purchase on Monday, which is day six from the time you received the disclosure.<\/strong><\/p>\n

What is the fastest timing for the new disclosure process?<\/strong><\/p>\n

Prior to October 3, 2015, you could fund the same day you got final disclosures, and real estate agents are accustomed to writing purchase contracts based on this old timing. \u00c2\u00a0As of October 3,\u00c2\u00a0your agent and lender must coordinate closely when writing purchase contracts\u00c2\u00a0to make sure your agent accounts for these new TRID timelines to write the fastest contract possible.<\/strong><\/p>\n