Can someone explain the new mortgage laws taking effect Oct 2015?
I've heard there are new mortgage laws that took effect in the early part of October 2015. Can someone please explain?
Asked by Ash
Answered 1 year ago
The new rules relate to disclosures and how all lenders are required to disclose costs, rate, and payment information. The last three or so years, we have all been using the same form but it wasn't helpful to understand by either lenders or borrowers. The new disclosures are much better- in fact the same form that is used to initially disclose costs with the application is the exact same form that will be signed at closing (replacing the HUD 1 Settlement Statement.) Feel free to ask a follow up if you have another question about it.
This new rule went into effect 10/03/2015 and is called TRID = "TILA-RESPA Integrated Disclosures Act"
It pertains to how loan terms are disclosed and delivered. They did away with the Good Faith Estimate now that document is called a "Loan Estimate." No longer can mortgage companies and loan officer's send out rate quotes via email, they have to be sent on a "Pre-Application Worksheet" and everyone has to agree to receive electronic documents by signing a "consent to e-docs" prior to receiving quotes and disclosures. Then once the loan is locked Borrower's must sign the e-disclosures and intent to proceed before an appraisal can be ordered. This has to be done within 3 days of locking the loan, or the lock will be canceled.