TILA-RESPA Integrated Disclosure
New Mortgage Rules Implemented on October 3, 2015
These new mortgage rules are made as a result of the catastrophe during the housing boom. Due to this boom came the FHA Loan Rules of 2015. A large percentage of borrowers felt they didn’t understand the agreed to loan terms. These terms increased their payments over the time after a certain number of years.
Some in the real-estate industry worry that the rest of the year could be filled with delayed closings and frustrated borrowers. Adjusting to the new mortgage rules may also be a challenge for real-estate professionals.
How Will This Affect You?
The main impact is the amount of paperwork, and much more attention to deadlines and dates. Therefore, of course, longer contract to close periods. It will take some time and understanding for real estate buyers to adjust and get familiar with the process. However, first time home buyers will have an easier time understanding the agreed upon loan terms when they close.
Keep in mind these changes only affect any contract executed after October 3, 2015, and does not pertain to cash buyers.
Are you confused about the new mortgage rules and need some help? You can call us any time, and we will be happy to explain them to you.
Visit ConsumerFinance.gov to learn more about TILA-RESPA Integrated Disclosure and the new mortgage rules.