Actually, they are already in progress. The NEW TILA-RESPA Integrated Disclosure Rule took effect on October 3, so any buyer who is just now applying for a mortgage will be under this new regulation. In about a month we will start seeing the new disclosures at the closing table.
There are a LOT of changes to talk about, so keep an eye on upcoming posts that are intended to help you understand all of the changes. Rest assured, I have been educated on the new rules and forms, and I am ready to go!
Let’s talk about the NEW LINGO:
- What we used to call the LENDER is now called the CREDITOR
- The BORROWER is now the CONSUMER
- We used to talk about the loan TOLERANCE, now we will call it VARIANCE
- Buyers used to receive an INITIAL TRUTH IN LENDING STATEMENT and a GOOD FAITH ESTIMATE. Now these two will be combined into the LOAN ESTIMATE.
- The HUD-! SETTLEMENT STATEMENT and the FINAL TRUTH IN LENDING STATEMENT will now be combined into the CLOSING DISCLOSURE.
- Finally, the CLOSING will now be called the CONSUMMATION (Stop giggling, this is really what they’ve decided)
Change is tough, and it will take some time to get used to everything but I am ready!