Closing Changes Just Around the Corner
Don't Get Thrown by Doc Overhaul Timely closings will require advance planning under new compliance rules. MAY 2015 | BY ROBERT FREEDMAN August 1 will be a big day for real estate professionals because that's when two new closing forms—a Loan Estimate and a Closing Disclosure—will replace the three forms you're used to working with: the HUD-1 Settlement Statement, the Good Faith Estimate, and the Truth-in-Lending disclosure form. The purpose of the new forms, which were created by the Consumer Financial Protection Bureau with input from consumers and industry groups, including the National Association of REALTORS®, is to consolidate information and make it simpler for consumers to compare how close their costs are to what was originally estimated by the lender. The first page of the new Loan Estimate and the new Closing Disclosure are formatted in exactly the same way, so you and your clients can easily compare costs and note any changes. Expect refinements to t...