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Update on “Know Before You Owe “Mortgage Regulations

If you have bought or sold property with a mortgage since October of 2015 you probably noticed some things have changed. If you are in the process of buying or selling right now, there are some things you should know. The new mortgage rules that the government put into effect last fall have changed the way borrowers compare loan products and fees and regulates the timing of loan disclosures. The law that went into effect in October of last year is called the TILA-RESPA Integrated Disclosure rule or TRID. The idea behind this change was to allow consumers to shop around for a loan and have time to compare payments and fees. The new disclosure form has all the closing costs and estimated cash to close in a standardized format which makes comparing loan products easier for the consumer. There are benefits to the buyers with these new disclosures which not only give them a clearer picture of the costs, but a period of time to go over the figures and ask questions before they commit to the loan. The government felt that one of the reasons for the lending crisis was that consumers were not given adequate time to read the loan documents and ask questions before they had to close on the property. These new rules require waiting periods before final loan documents can be signed. There is also a low threshold for any changes in costs from the initial disclosure period. The new regulations require the buyer to be given the Closing Disclosure form at least 3 days before the closing so they have time to...

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