New Mortgage Rules Went Into Effect October 3, 2015

If you are thinking about buying a home, new rules took effect on October 3, 2015 that will change your home buying experience. For a comprehensive review of the new rules, you should visit the website (www.consumerfinance.gov) for the Consumer Financial Protection Bureau (CFPB), the federal government agency charged with overseeing consumer finance.

The new mortgage rules are intended to allow the buyer to “know before you owe” and provide all necessary information consumers need to make informed choices concerning applying and obtaining mortgage financing. The CFPB provides information regarding the newly implemented TILA-RESPA Integrated Disclosure Rule, often referred to as “TRID”. As the mortgage process can be complex, the new rule is intended to simplify and consolidate required loan disclosures and change the timing of certain activities in the mortgage process.

For anyone that has already purchased a property and obtained a mortgage through a financial institution, he or she may have experienced receiving their final paperwork the day of the closing. He or she may have experienced learning the amount he or she needed to bring to closing that very day or up to an hour before a closing. Clients would have to rush to get to a bank and obtain a bank check or have monies wired to the closing attorney at the last minute.

Under the new rules, buyers will have more time to review closing packages and will know the sum of money that is required for the closing. For instance, one of the important changes is that the lender must provide the closing documents to a buyer at least 3 business days before a closing. This will allow the buyers and their attorney to review and discuss the terms of the financing and any other matters associated with the loan process. Buyers will be able to have more time to make arrangements to obtain monies from his or her bank and to coordinate time off of work to attend a closing and/or sign all of the necessary paperwork.

While there will be a learning curve associated with any new legislation, Attorney Deborah Gold-Alexander will be updated and will have compliance with these new rules. While many real estate attorneys may choose to no longer handle real estate transactions as a closing attorney involving mortgage lenders because of the new rules, that do in fact, create much more regulation for the real estate practitioner, Attorney Deborah Gold-Alexander is up to the challenge.