We are your source for information and expertise on the closing process under the new regulatory environment.
The CFPB regulatory changes coming in October 2015 are going to affect your real estate transactions – the closing experts at Ivy Pointe Title are here to help you get ready. Time to prepare for the TILA-RESPA Integrated Disclosure Rule – is running out.
On October 3, 2015, the Consumer Financial Protection Bureau’s mortgage disclosure rule – enacted to make it easier for consumers to shop for mortgages and protect them from costly surprises at their closing by integrating consumer disclosures – goes into effect.
Ivy Pointe Title is approaching the preparation for the disclosures rule and other regulations as an opportunity to provide our superior transparency and service to all parties involved in the real estate transaction. We are here to guide you through the challenges of working in this new regulatory environment.
As the focal point for real estate transactions, real estate professionals will be affected by a number of rules and regulations put forth by the Consumer Financial Protection Bureau (CFPB).
The CFPB regulations involve the people who will be using the new forms—consumers, lenders, mortgage brokers, settlement agents—in helping buyers understand all fees and conditions of a loan.
Make sure your closing partners are vetted and verified by your lenders and meet with them to discuss the new disclosures and their preparations for the new regulatory environment.
These are the major changes for you coming from the CFPB’s regulations:
- You will need to be able to talk your clients through the new forms resulting from the proposed mortgage disclosure rule – the Loan Estimate document and the Closing Disclosure form. These documents both seek to increase the transparency on the costs and additional fees involved in obtaining mortgage loan financing.
- The CFPB’s mortgage rule materially impacts the timing of your transactions with a mandatory three-day notification for both the Loan Estimate form and the Closing Disclosure form. Buyers will receive disclosures shortly after they apply for a mortgage and shortly before they close on the mortgage.
This sample calendar shows generally how the new regulatory requirements and forms will affect the mortgage application and closing timeline. The specific timeline for each loan can be different depending upon the actual day of closing.
- Settlement and Closing can be handled in one of two recommended ways. The lender has full responsibility for the accuracy of the Closing Disclosure form. However, the lender may delegate some or all of it’s preparation and the final closing itself to a settlement / title agent. The lender may also choose to do all this work in house almost mandating that the lender conduct the closing. Depending on the choice from the lender, the communication level between the lender and it’s mortgage partners will be affected.
- Documents containing non-public information will be required to be fully secure. So, for example, it will no longer be possible to email a HUD-1 form, mortgage application or request for title. All these documents will be initiated and modified on the secure networks of the lender or settlement/title agent. Buyers’ and sellers’ private information can be kept completely separate ensuring that each party’s information is not available to the other.
Ivy Pointe Title’s leading edge web portal and mobile app are available now to manage this requirement for you.
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