Congress recently directed the Consumer Financial Protection Bureau (CFPB) to revamp all real estate transaction disclosure forms to streamline the loan process and to create more transparency into the costs and terms associated with home financing as a protection to consumers.
After 3 months of working with this new law, the writer of this blog, Joe Criscuolo, a seasoned real estate veteran, has observed the following:
*Loan approvals are taking longer and closings are being delayed. A mandatory three-day period to reset is now required if there are any last minute changes or adjustments to the sale figures. This can create a ripple effect if a chain of transactions are involved.
*Purchasers, Sellers, Lenders, Realtors and Attorneys are extremely frustrated with these changes. The Federal regulation is incomprehensible along with the new software required.
*Consumer fees are higher. Attorneys have to charge more for the added work and time involved. Some attorneys have stopped handling real estate closings altogether unless they're all cash transactions. Your family or favorite attorney might have to refer you somewhere else.
In conclusion, be prepared that real estate closings will never be the same. All the more reason to work with a Realtor that understands these changes and can guide you professionally through the process.