Closing time to get a makeover
As most in the industry are already aware, some big changes are coming August 1, 2015 to the mortgage/real estate industry. Changes are being imposed that will almost certainly add some breathing space, and potentially more clarity to the home buying process. Unfortunately, these changes will likely come with a potentially frustrating learning curve as lenders, title companies, and Realtors adapt to these changes. Gone will be the day of last minute changes without a delay to closing, and most likely, a direct result of these changes will be longer closing dates on contracts.
In a nutshell, 3 common forms, the good faith estimate (GFE), the truth-in-lending (TIL) document, and the HUD-1 settlement statement will be disappearing, and essentially combined into one, easier to read form. In addition to the revised forms, a new rule is also being imposed that require that closing documents are in the hands of the consumer at least 3 days prior to the closing. This is great news for consumers who may need a little time to review, and/or have questions pre-closing, but the change will come with some adjustment for behind the scenes operations, and may cause some chaos as professionals in these fields adjust to these new changes in our industry.
Check out this article from The Washington Post that covers the topic in great detail: Closing time to get a makeover
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