Getting up to date CFPB information is a good thing, especially when it comes from your trusted Title Company partner. Stewart Title has taken the lead in our industry at educating our Realtor and Lender partners on this issue that will effect everyone starting October 3rd 2015. Usually on this website I’m creating all the content myself and pushing it out to you, but this time I’m posting some very good CFPB Information to review regarding the new mortgage disclosures and any delaying of settlements.
*The information below is from www.consumerfinance.gov and not my original copy.
The answer is NO for just about everybody.
For mortgage applications submitted on or after October 3rd 2015, lenders must give you a new, easier-to-use disclosures about your loan three business days before closing. This gives you time to review the terms of the deal before you get to the closing table. Many things can change in the days leading up to closing. Most changes will not require your lender to give you three more business days to review the new terms before closing. The new rule allows for ordinary changes that do not alter the basic terms of the deal. Only THREE changes require a new 3–day review:
- The APR (annual percentage rate) increases by
more than 1/8 of a percent for fixed-rate loans or
1/4 of a percent for adjustable loans.1 A decrease
in APR will not require a new 3-day review if it is
based on changes to interest rate or other fees.
- A prepayment penalty is added, making it
expensive to refinance or sell.
- The basic loan product changes, such as a
switch from fixed rate to adjustable interest rate
or to a loan with interest-only payments.
1 Lenders have been required to provide a 3-day
review for these changes in APR since 2009.
NO OTHER changes require
a new 3–day review:
There has been much misinformation and mistaken commentary around this point. Any other changes in the days leading up to closing do not require a new 3-day review, although the lender will still have to provide an updated disclosure.
For example, the following circumstances do not require a new 3-day review:
- § Unexpected discoveries on a walk-through
such as a broken refrigerator or a missing stove,
even if they require seller credits to the buyer.
- § Most changes to payments made at closing,
including the amount of the real estate
commission, taxes and utilities proration, and
the amount paid into escrow.
- § Typos found at the closing table.
If you want the NEW Settlement Forms please let me know! I have them and they can be emailed over so you can become familiar. If your Title Company is not helping you build your business or bringing up to date CFPB information to you, please fill out the form below and tell me how I can help you!
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