Under the new federal real estate settlement procedures that took effect late last year, an unexpected problem is taking shape: Many lenders and title companies are refusing to provide copies of the final closing documents to real estate agents representing homebuyers. That, in turn, is threatening to jeopardize one of the traditional services agents perform for their clients — scrutinizing closing statements for inaccuracies that could cost them money or delay the settlement unnecessarily.
Yet in a recent internal survey of members across the country, the National Association of Realtors found that 54.5 percent of agents reported they had experienced difficulties obtaining the closing disclosure form used under the new federal rules, and that half of these agents detected errors when they finally reviewed them. The errors included incorrect fee charges, commission splits, taxes and failure to include seller concessions to the purchasers, among others.
In some cases, when closing disclosures had to be changed and reissued — triggering a mandatory three-day waiting period for the purchasers and delaying the settlement — sellers have balked and even canceled sales. Eric Post, principal broker at BHGRE Realty Partners in Portland, Ore., told me “we’ve had some situations where this caused the termination” of entire deals because the delay “wasn’t acceptable” to the sellers.
Read more at: http://www.chicagotribune.com/classified/realestate/ct-re-0306-kenneth-harney-20160303-column.html
Instead of receiving four different disclosures in various formats, as currently required under the Truth in Lending and Real Estate Settlement Procedures Acts, borrowers will receive just two. Intended to make the loan process more transparent, the new forms, created by the Consumer Financial Protection Bureau look similar and are much easier to understand.
According to the new rules, disclosures must be delivered on a timely schedule. The initial loan estimate must be provided to borrowers no later than the third business day after they submit a loan application.
Its first page shows the loan amount and interest rate, what the borrower’s monthly payment would be, estimated taxes and insurance, and how much cash is required to close.
The Closing Disclosure, outlining the final transaction, must be provided to borrowers at least three business days before the closing date. This is a major change, as borrowers typically don’t see the closing documents until they are ready to sign.
read more: http://www.nytimes.com/2015/09/27/realestate/new-disclosure-rules-for-mortgages.html?ref=realestate&_r=0
disclosure: for information and entertainment purposes only
The federal government has a real estate question for consumers who’ve bought or refinanced homes that’s certain to generate more than an earful: Were there any problems when you went to close the deal?
Any last-minute glitches or surprises that delayed the settlement, required unexpected negotiations or, worst of all, blew up the sale or refi? Did you get your settlement sheet in advance so that you could review the documents intelligently? Were there any errors or discrepancies that popped up — charges that were considerably higher than you had expected, loan-related fees or an interest rate that differed from what you thought you had signed up for? Was the whole process pleasant? Was it “empowering”?
Wow. Talk about stirring up hornets. The Consumer Financial Protection Bureau, which has broad regulatory powers in the real estate settlement arena, wants to know whether there are common problems that need to be fixed. If so, it may make what it euphemistically calls “interventions” in order to right what seems to be wrong.
The bureau also wants to hear from realty professionals, lenders, title insurance and escrow agents, attorneys and others who play roles in closings on homes — the people who produce, bless and witness the signings of mounds and pounds of paper associated with the settling of America’s home transactions.
read more at: http://www.utsandiego.com/news/2014/jan/12/tp-feds-want-to-know-if-you-had-closing-woes/