EDUCATE YOURSELF NOW AND BE PREPARED FOR NEW CLOSING PROCEDURES

4/7/15 - The world as we know it is changing!, That is the Real Estate, Mortgage and Lending Industries will be changing effective August 1, 2015 and it is imperative that we prepare ourselves as much as possible. This will affect your real estate closing time frame and it is best that we plan ahead when preparing your Purchase Contract (and Escrow Instructions).

Under the new rules of TRID (TILA/RESPA Integrated Disclosure) which the Consumer Financial Protection Bureau (CFPB) has put in place, the Consumer must receive a Closing Disclosure three (3) business days before the consummation date. The referred to consummation date is defined as the date the Consumer signs the new loan documents.

It is important to be aware that in the event the Buyer, now being called and referred to as “The Consumer”, does not receive the Closing Disclosure within this specific time framework, the closing will be delayed.

TIP: While we will all be subject to a “learning curve”, it is of the utmost urgency that we do all that we can to prepare as much as possible to avoid complications at closing. While we will have to deal with issues at the time they occur, it may be prudent to incorporate into your Purchase Agreement and Escrow Instructions a provision for an extension to the closing date, due to delays in Buyers receipt of the Closing Disclosure (and prepare the Sellers to be more flexible in regard to the date of closing).

The good news is that we have the entire country coping simultaneously with the same concerns and issues, which I believe should lend us support while we learn as we go along.

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