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1110 Tuscarawas Avenue NW, New Philadelphia, Ohio 44663
Buying a home is one of the largest financial transactions the average American gets involved in. In addition, they usually only get involved in such a large transaction a handful of times in their lives, which makes these situations a prime target for unethical dealings. Of course, the first step is to deal with a reputable real estate professional that can help you navigate these choppy waters, but in addition, the U.S. government is instituting new rules to help better inform home loan applicants of exactly what they’re getting into. However, these new regulations will have an impact when it comes to closing time, so let’s walk through the new regulations.
There are 2 main regulations that are meant to protect home financing customers:
In addition, following the financial crisis of 2007-2008, Congress created the Consumer Financial Protection Bureau (CFPB) to consolidate all the consumer financial protections under one unit for more efficient enforcement. The CFPB is combining the disclosures required in these previous laws into the not so easily named TILA-RESPA Integrated Disclosure Rule, or TRID for short.
These new disclosures present the information in an easier to understand format, but they can make the entire closing process slower.
Currently, home loan customers receive 2 sets of disclosures, one at the beginning of the loan process and one at the end.
The CFPB deemed the current process too confusing and intimating because the customer may not have time to fully digest the disclosures or might not feel comfortable disputing on the day of closing.
Therefore, the new rules dictate not only a different timeline for the disclosures, but a new, uniform format to make them easy to compare.
This all means that you’ll receive the information in a similar, easy to understand format with the time available before closing to digest it. However, this extra time, while intended to be a consumer protection, can add extra time to the closing process, making a quick closing more difficult. If you have any questions about the process, your real estate professional can help answer any questions.
1110 Tuscarawas Avenue NW
New Philadelphia, Ohio 44663
Phone: (330) 364-6648
Fax: (330) 364-2355