By now you’ve heard about the big changes coming to the closing table in the months ahead.
Starting soon, the HUD-1 settlement form, the Good Faith Estimate, and the Truth in Lending Act disclosure are going away. They’ll be replaced by a new Loan Estimate and a new Closing Disclosure.
And that’s not all. The Loan Estimate will have to be given to the buyer three days after the loan application is submitted. The Closing Disclosure will have to be in the hands of the buyer three days before closing. And if certain changes are made to the Closing Disclosure after the buyer receives it, the paperwork will have to go back to the lender for approval, starting the three-day clock all over again.
These changes were developed by the Consumer Financial Protection Bureau to make the process easier for buyers to understand and also to reduce the chances of last-minute surprises—and they will affect every closing in America. And as a real estate professional, you’re the one who will be bringing everyone together, keeping things on track, and providing explanations. To help you prepare for the new rules and avoid surprises, NAR will be presenting a live webcast featuring Phil Schulman, an attorney with K&L Gates and former official with the U.S. Department of Housing and Urban Development who specializes in federal closing rules, and NAR Senior Counsel Finley Maxson. The webcast is scheduled for Thursday, July 16, at 2 p.m. Eastern time. Click here to register.
If you have a question you’d like us to address during the webcast, please let us know by leaving a comment below.