Hello Closing Disclosure and Godbye HUD-1
All the transactions initiated after August 1st 2015 will have a new set of documents to learn. HUD-1 and Good Faith Estimates(GFE) won’t be used anymore. A Loan Estimate will replace GFE and the Closing disclosure will replace the rusty HUD-1. According to the new regulations lender is obligated to give the Loan Estimate within 3 days after the consumer applied for the loan. Unlike the GFE, the new Loan Estimated needs to be signed by the borrower and kept along with lender files.
The Closing Disclosure Form needs to be in the hands of the consumer 3 days before closing, any change in figures affecting, rates, payment terms, prepayment penalties , loan costs, etc. will reset the clock and need another 3 days before closing can happen.
CFPB Director issued a statement with a proposed change of implementation deadline to October 1st 2015. Check out the press release
For you as a buyer or seller is imperative to make sure your team is fully trained on the new regulations and all the steps needed for a smooth closing. This includes your Realtor, your Attorney and Your Loan Officer.
Urban Select Realty agents, Title and Lender partners are already trained and ready to deal with the new regulations. Feel free to contact us with any questions. 754-400-1566 and ask for Jose Miori – President and Managing Broker