The Consumer Financial Protection Bureau (CFPB) has made July 31, 2015, a day of mourning. But all will be well....in due time. Starting August 1, 2015, consumers and lenders will begin using the new Loan Estimate and Closing Disclosure forms. While these forms are designed to be easier for the consumer to read and understand, there will be issues while people get acclimated to new requirements. These new changes are very likely going to create headaches for both lenders and consumers, such as delayed closings and potential lawsuits over deposits and breaches of contract.
What does a lender need from the consumer to provide a Loan Estimate?
What are the time requirements in providing sellers and buyers the documents?
What does a Saturday mean for the consumer and lender?
Does the consumer still get a Truth-in-Lending disclosure?
When does the consumer have to show proof of insurance?
What pages of the documents will the seller get? The buyer?
It’s going to take a while for the industry to familiarize themselves with these changes. Prepare yourself in advance by speaking with a licensed Florida attorney to ensure your contract protects you. Also, visit www.consumerfinance.gov/mortgage-estimate for general information and tools.