There are changes in the air! Starting this August you will be seeing new Disclosures and regulations on Loans. Don’t worry though, we have all the facts thanks to clatitle.com!
“On August 1, 2015 the HUD 1 will be replaced by the new Closing Disclose and the new Loan Estimate will be replacing the Good Faith Estimate and the Trust in Lending Disclosure.” – C.L.A Title
Closing Disclosures forms are going to be 5 pages long instead of 3 pages and must be given to the borrower 3 business days before closing! This is much earlier than the original 24 hours prior to closing. The Closing disclosures has much of the same info as the Trust Lending form and the HUD 1 explanation of fee’s and closing costs is closely resembled in page 2 and 3. There is more explanation on cash to close, which is wonderful, and page 4 has an easy to read section explaining escrow. The last page is a quick summary of loan calculations, contact information, and other disclosures.
Lenders are now going to be required to provide the borrower the Loan Estimate 3 business days after the application has been submitted by the consumer. The first page contains information on the breakdown of loan terms, projected payments, and closing cost. The second includes the break down information of the closing cost. The third page explains additional information about the loan along with the APR.
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