Starting August 15, 2015, ALL real estate closings where a mortgage is involved will have a MANDATORY CFPB issued form that you must get and approve THREE DAYS BEFORE CLOSING. (Yes, lots of capitalization- it’s on purpose!). (See the form by clicking here)
What does this mean? Real estate agents MUST start giving an extra week for closings. Borrowers will be getting their 2014 version of the HUD1 three days before you actually go to closing and NO CHANGES can be made.
This will make you do walk throughs way before you want to, add additional time to transactions and make the slime ball mortgage guys tell the truth up front.
I am sure there will be the majority of real estate agents that will be freaking out about this. It will make your life and the buyer’s transaction more miserable.
Who’s fault is this? Blame the aforementioned slime balls and a lot of real estate agents. You are the ones that were all thrilled with the nodocs and option arm ez-loans that destroyed the market. Now, the pendulum has swayed and you have to pay the price.
Who to complain to? Call your GAD at your local NAR office and tell them to tell the people at NAR to complain to the CFPB. Along with the mortgage industry and the title insurers, everyone needs to change this. The CFPB wants to make sure people are not ripped off but they don’t understand the cost. There is an easier way, we all know it.
If there was a simple website that everyone’s GFE went on at application and if the HUD1 went online and it matched within tolerances, then the three day period is useless. Let’s use technology for good.
We can protect, defend and be efficient.