Congress established the Consumer Financial Protection Bureau (CFPB) after the financial problems of 2008. Starting in October, there are two new forms that the borrower is required to receive. The Loan Estimate is given to the borrow at the beginning of the process and the Closing Disclosure is provided right before the end of the process.
This Causes Delays in Closing
One key issue is that the borrower is required to sit and ponder the Closing Disclosure for three days. Additionally, if the document is not delivered by hand, there is another three-day “delivery period” even if it was emailed and they confirmed they got it, and even if the borrower got it from FedEx and signed for it. Also, these six days need to be six business days. Also, these six days can’t be holidays.
If certain changes are made to the Closing Disclosure a new form is required and new waiting and delivery periods are required as well.
In other words, in an effort to protect the consumer, they are now required to wait an extra week before they can close on their loan. The new forms are meant to be easier to read and give the borrower a clear view of the loan they will be agreeing to. It’s a good intention, but many borrowers will be upset because of the delays caused by the new system built on good intentions.
The Good News
The Staff at Chicago Financial is well-versed in the new requirements. We’ve been preparing for this and will, as always, provide the easiest mortgage process as possible. We can tell you all about the changes. We’re on top of it.