Market moving OK under new mortgage disclosure rules

SAN DIEGO – Nov. 16, 2015 – Months of preparation and training paid off for Realtors® as the implementation of new closing documents – the Real Estate Settlement Procedures Act and Truth in Lending Act Integrated Disclosure – enters its second month with minimal delays, according to panelists at the “RESPA-TILA Know Before You Owe Rule: Regulatory Issues Forum,” part of the 2015 Realtors Conference & Expo in San Diego.

On Oct. 3, 2015, the TILA-RESPA Integrated Disclosure Rule took effect as part of the Consumer Financial Protection Bureau’s ‘Know Before You Owe’ initiative. CFPB’s goal was to offer greater transparency to mortgage borrowers.

Under the rule, a single Loan Estimate (LE) document replaced the Good Faith Estimate and Truth in Lending disclosures. Consumers must receive the LE within three business days of applying for a loan. A new Closing Disclosure (CD) form replaced the HUD-1 Settlement Statement and the final Truth in Lending disclosure. That form must be given to consumers at least three business days before closing.

Panelists shared their insights into the rollout and implementation process.

“Realtors worked hard to get themselves educated about … Know Before You Owe, and that work seems to be paying off,” said 2015 NAR President Chris Polychron. “We are pleased that closing delays and other harmful effects resulting from the new rules have been reportedly few in number so far.”

Polychron said there still might be “bumps in the road,” but “NAR will continue to monitor the implementation of ‘Know Before You Owe,’ communicate Realtor® concerns to the CFPB, and work to help ensure on-time, efficient closings for consumers.”

NAR also worked with the CFPB to win concessions before the rule became effective, including delayed implementation for several months. It also pushed CFPB to show “sensitivity” towards good-faith-actors that were working to comply with the new rules in the early stages of implementation.

The panel included Patricia McClung, assistant director for Mortgage Markets at the CFPB; Karen Crowson, chair of NAR’s Regulatory Issues Forum; Stephen Hoover, vice chair of NAR’s Regulator Issues Forum; Don Chiesa, vice president of National Loan Production at Quicken Loans; Anthony Lamacchia, broker/owner of Lamacchia Realty in Waltham, Massachusetts; and Maria Lau, sales division manager of Waco Title in Waco, Texas.

© 2015 Florida Realtors®