Experiencing Closing Delays? We Want to Help

Filed in Codes and Regulations, Housing Finance by on April 6, 2016 2 Comments
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houseandcalculatorNew rules implemented on Oct. 3, 2015 have overhauled the disclosure process for closing on a home mortgage. The forms that have been used for decades — the Good Faith Estimate, the Truth in Lending and HUD-1 Settlement Statements — have been replaced by the Consumer Financial Protection Bureau’s new integrated disclosure forms, the “Loan Estimate” and the “Closing Disclosure.”

Under the new rules, the Closing Disclosure must be provided to the consumer a full three days prior to closing, and if there are certain changes during that 72-hour period, the closing could be delayed. In addition, the hefty penalties  assessed on lenders for failing to meet the new disclosure requirements also are lengthening loan processing times.

As lenders adjust to the new rules, industry surveys have indicated that loans on average were taking longer to close. NAHB is working to determine if the new disclosure requirements are creating problems for home sellers and buyers and whether there are aspects of the new home financing process that are creating particular difficulties for NAHB members.

If the new disclosure rules have resulted in delayed closings, lost sales or other impacts on your business, please contact us and tell us your story.

Your feedback on this issue is especially important and will help us to engage regulators to see if any changes are needed to ensure a smoother loan closing process for lenders, home builders and home buyers. Please note that your responses will be kept strictly confidential. Email Jessica Lynch at NAHB or call her at 800-368-5242 x8401.

Visit NAHB’s website to learn more about the new rules and download resources to help you comply.

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  1. MARK ZIMMERLY says:

    With more than 30 years experience in the business I recently purchased for the
    first time someone else’s new construction property as a vacation home in Florida.
    This was an eye-opening experience, because I have never rode in the back of the car
    with a realtor to purchase a new home.
    I have never went through the purchase process as a buyer and seen the amount and the
    difficulty in in acquiring paperwork to close a consumer loan. All the previous times I
    heard from buyers the difficulty they had with loans on the consumer side of purchasing
    was unknown me. The many and various papers they have to bring to the closing table to
    confirm and substantiate their down payment, their financial history, their financial
    investments and retirement accounts. It is no wonder people are upset and confused during
    the home-buying process. I now have a thorough understanding of what they have been
    telling me for the last five years on their difficulties.
    The only good that has come out of this is now only qualified customers are able to
    purchase homes that are backed with solid loans to avoid the pitfalls of the past.

  2. Harry Crowell says:

    The comment above it correct in that the paperwork is so many pages that it is virtually impossible for any person to fully comprehend. there are no changes allowed; so if any issue is of concern to any buyer there can be no loan. The regulators have made infractions so costly the lenders are frightened to make the smallest error, even thought it should make absolutely no impact on the loan./
    Yes these rules do cause a loss of buyer qualification and loss of sales.

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