CFPB Nevermind Mortgage Bankers

BREAKING NEWS

Today, the CFPB has announced that they will issuing a proposed delay to the Know Before You Owe rule until October 1, 2015. Nevermind

Mortgage lenders nationwide scrambled to figure out how they were going to be zero tolerance with escrows and attorneys who can't predict all their costs upfront. Lenders have spent millions on legal advice and computer updates to comply but a clerk failed to check US law.. cough 

CFPB Director Richard Cordray issued this statement, "The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015. We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks. We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time."
What? Because school starts in September we waited until October 1st? Mortgage lenders and bankers aren't ruled by back to school???

Roseann Roseannadanna Gilda R. we miss you!

Rules for Mortgage Disclosure ( burn the old rules)

Oh no!!! the Final Integrated Mortgage Disclosures Rule from the Consumer Financial Protection Bureau (CFPB) is here. Don't worry it's not going to be the final "final" some senator is going to make up new procedures that make little sense. Now the CFPB lights a little gasoline on your desire to close quickly, sorry this tastes bad but its for your own good. How many times do borrowers avoid reading Truth in Lending and Good Faith Estimates? In a transaction I send them more than once, now we will be sending again at closing. Welcome to the new improved Act and the Real Estate Settlement Procedures Act.

The most important change is the mandate of the use of two new documents: the LOAN ESTIMATE and CLOSING DISCLOSURE.

• Except for reverse mortgages, clients will no longer receive an initial Truth in Lending (TIL) form and Good Faith Estimate (GFE), or a final TIL form and HUD-1 Settlement Statement (HUD-1). This is not a good thing. 

• The initial TIL and GFE will be replaced with the Loan Estimate, which must be provided within 3 business days of loan application. (Business days will include Saturdays if the lender is open to the public and carrying on substantially all of its business functions.)  A New name for TIL and GFE fails at being helpful to Borrowers - here is why: escrow and states with attorneys are often Mostly frequently wrong about their costs upfront. 

•  The final TIL and HUD-1 will be replaced with the Closing Disclosure, which must be provided at least 3 business days prior to loan closing. This means borrowers cannot close on their loan until at least 3 business days after receiving the Closing Disclosure. (Business days will include all calendar days except Sundays and certain enumerated legal holidays.) 

• These documents go into effect for loans on which a loan application is taken on or after August 1, 2015.

The initial TIL, GFE, final TIL and HUD-1 will continue to be a part of the closing process for reverse mortgages and for transactions on which an application was taken before August 1, 2015. 
 

I planted some nice succulents in these old metal gas cans in memory of the old procedures. If you want one as a closing gift, just ask. 

Ladera Ranch Open House Today

17 Granville Ladera Ranch open house today 1:00 - 4:00 PM Sunday
Aldenhouse condo priced to sell quickly
Come visit the lovely neighborhood.
This unit is 1612 square feet lot 1557 unit built 2001

Listing agent is Miriam Hosseini of Royalty Mortgage and Real Estate

Come stop in and have a glass of iced tea!