Real Estate Tips

How The Revised Truth in Lending Act Affects Your Business

You have until October 3, 2015, to familiarize yourself with the new regulation implemented by the Consumer Financial Protection Bureau affecting the Truth in Lending Act and how it will affect your business.

 

The largest impact you’ll see will be new rules changing how your clients obtain mortgages, but here are three points for you and your clients to focus on.

1. Condensed Forms

Several forms have now been combined, including the Good Faith Estimate form and the Truth in Lending Act’s required disclosure form. This new form is called the Loan Estimate Form, and you and your clients need to make sure you are aware of the deadlines of filling out the form and submitting it to the lender.

2. Closing Disclosures

The new three business day timeframe for reviewing the Closing Disclosure means that changes may be made during the final walk-through prior to closing. These last minute changes will mean a new form, so you and your clients need to be prepared for this possibility.

3. Closing Schedule

Buyers are now required to review the Closing Disclosure within three business days. But, it’s important to realize that the timeline is tied to the mailing date, so it’s likely borrowers will have a shortened time to review this paperwork. As a Real Estate Professional you’ll need to be sure that the new timeline is met so unwanted delays don’t hinder the loan process.

These changes should actually make the mortgage process easier for both you and your clients, so long as you are aware of what is needed and share the correct information with your clients. It also gives you additional opportunities to add American Home Shield to listings. There’s always the opportunity to add ShieldEssential Sellers Coverage when the listing is created, but now you can also offer these services when presenting the Loan Estimate form, which can go a long way to help with a smooth closing. And lastly, at closing and since the process is quick and easy it won’t delay the process.

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