New Home Loan Closing Regulation Set to Cause Delays Starting October 1, 2015

The Consumer Financial Protection Bureau approved a new TRID-TILA-RESPA Integrated Disclosure Rule to go into effect October 1, 2015.

The new rule replaces the current Good Faith Estimate and Truth in Lending forms with a loan estimate which must be provided within 3 days after a loan application, and a final loan closing cost disclosure form which must be provided 3 business days before closing.

The big change is the Closing Disclosure document that requires the final loan approval and HUD1 closing statement to be provided to the borrower 3 business days before closing. This obviously will negatively effect how quickly closings can take place, plus, no last-minute modifications will be allowed.

If there are any changes at all the 3 business day waiting period will be triggered again. It is inevitable that this new closing disclosure regulation will cause major delays in the home buying process for all involved.

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