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Showing posts from October, 2015

The New RESPA Rules on Mortgage Lending

THE DAY THE CLOSINGS STOOD STILL As of October 3, 2015 the federal government enacted new RESPA rules on all mortgage lending which will have a dramatic impact on closings, the affect of which will not be felt for approximately two months or when these transactions are scheduled to close. The TILA-RESPA Integrated Disclosures (TRID) system, overseen by the Consumer Financial Protection Bureau (CFPB), was implemented this past Saturday.
Starting now, lenders will use two new forms to explain the details of mortgages, a loan estimate which must be given to a borrower no later than the third business day after the borrower applies and a final closing disclosure which borrowers must receive three business days prior to closing. The HUD-1 Settlement Statement which has been the traditional document issued by settlement agents at closings throughout the country is now a thing of the past.
Replacing the final truth-in-lending statement and the HUD-1 Settlement Statement will be the Closing D…