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CFPB CHANGES:

KEYS TO NEW CLOSING DISCLOSURES

www.sapphiretitleescrow.com

EXPECT NEW FORMS

KNOW THE NEW TIMELINES

HELP SPEED THE PROCESS

You will receive the Loan Estimate (LE) no

later than three business days after an initial

application.

You will receive the Closing Disclosure (CD) at

least three business days before closing.

Together, these disclosures detail

the consumer’s monthly payment, the costs

of getting a mortgage, the costs to close

and other pertinent information about the loan.

The rules require that you be given or mailed:

A Loan Estimate (LE) within three business

days after you apply by providing six items

of basic information — name, income,

social security number, address of the

property for the loan, estimated value and

the mortgage loan amount sought;

A Closing Disclosure (CD) at least 3 business days

prior to closing so you have time to review it;

An additional three business days to review

a revised CD if you or your lender make

certain changes to the annual percentage rate

(APR) or loan product after you receive the CD;

At least seven business days to review the

paperwork between the time you receive an LE

and the time you close.

Tell your lender to move forward as soon as you

finish shopping and are comfortable with your choice

of loan. You are allowed ten business days to decide

but you do not have to wait that long:

Give your lender any documents necessary

to complete the loan as soon as possible;

Read the LE, and any revisions to the LE,

carefully so any questions can be resolved early

in the process;

Avoid last minute changes to the loan to avoid

delay and prevent an additional three business

day wait;

Work with your real estate agent and the

seller’s agent to conduct home inspections,

order reports (e.g., pest inspection), and clear

any contingencies as early in the process as

possible;

Schedule your final walk through well before

the CD is issued, if possible;

Tell your lender as soon as possible about any

changes to the transaction that you think might

impact the loan or the closing;

Understand that this new disclosure process

could add additional time to completing your

loan as the new process is being introduced.

If you have any questions, please contact your lender or

real estate agent to ensure that your mortgage and

home purchase go as smoothly as possible.

The new “Know Before You Owe” or TILA RESPA Integrated Disclosure (TRID) rule from the Consumer

Financial Protection Bureau (CFPB) starts October 3, 2015. The rule not only requires new mortgage

disclosure forms, it also changes the way real estate transactions are processed and closed. By

understanding what is expected from you, you can help speed the process.