Dodd-Frank Reform Act of 2010 has changed our forms again. Really, for the consumer the only thing that you need to know is that the new documents need to be ready 3 Days Prior to Closing. At this point in time, if any changes would happen within the 3 day disclosure period, an additional 3 day disclosure period will be needed.
Whew. What does that mean for the consumer?
- Adjustment Period: Whether we like it or not, it’s going to take some getting used to these changes. There will be an adjustment period to get these new standards and forms down on the Mortgage and Title end. Therefore, closings could be delayed.
- Good Communication: There needs to be good communication between you, your mortgage lender, the title company handling the transaction, and the Real Estate Agent to keep this from becoming a hassle. It just depends upon how well the three entities keep each other and the consumer in the loop.
- 3 Days from Closing: As a consumer just make sure you get to the mortgage company all the information they request prior to the 3 days before closing. It’s better to have your ducks in a row. However, if there is a delay, it can be handled with an extension issued by one of the Real Estate Agents in the transaction; but, it’s an inconvenience, especially when there is that whole waiting period for 30 days for financing and then everything seems to hit at the end. Plus, I know you want in your new HOME!
I wish I could say for certain that every deal from August 1, 2015, onward will be smooth sailing. However, there are going to be hiccups, especially when a new process is put in place. As a consumer, understand this could cause a delay.