Last week the Consumer Finance Protection Bureau (CFPB), charged with combining the Good Faith Estimate and Truth in Lending forms per Dodd-Frank legislation, published their 1099 page proposed rule to accompany the proposed form. In addition, the HUD1 settlement statement will be a thing of the past, replaced with a Closing Disclosure form. Instead of a GFE and early TIL, the borrower would receive a Loan Estimate form.
The proposed Closing Disclosure consists of 5 pages. The proposed rule suggest that The Closing Disclosure would be provided to the consumer 3 days prior to closing. Changes to the disclosure of more than $100 would require an additional 3 days waiting period before closing. Changes as a result of negotiations between the buyer and seller after final walk through would be exempt for the additional 3 day waiting period. Purchase contract and rate lock expirations may become an issue in the requirement for a 3 day waiting period.
Once you have reviewed the proposed new disclosures you can comment by clicking here
