Whether you are a loan officer, real estate agent or previous home buyer, you know the confusion and aggravation mortgage disclosure forms can bring. The paperwork is lengthy, the signatures are vast and the figures are everywhere. It can be especially overwhelming for a new home buyer who is not familiar with all the rates and payments which is why the Consumer Financial Protection Bureau just shared their plan to simplify these disclosure forms.
One of the new disclosures may be named the Loan Estimate and would merge information from the initial lending act and Good Faith Estimate regarding closing costs and terms. The borrower would also get a Closing Disclosure three days before their closing which would hold information from the final lending act and HUD-1.
Normally when new rules come into action, creditors get a year to get into compliance and since the bureau is still gathering comments and testing the new disclosures, it is estimated that these new forms wont make it out on the market until at least 2014.
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