New mortgage disclosure rules take effect SaturdayNew mortgage disclosure rules take effect Saturdayhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=106622015-09-29T05:00:00Z2015-09-29T16:00:00Z​WASHINGTON, D.C. – Beginning Saturday, mortgage lenders will be required to use new consumer disclosure forms. The changes will merge the HUD​-1 Settlement Statement, the Good Faith Estimate, and the Truth-in-Lending disclosure form into two new closing forms: a Loan Estimate and a Closing Disclosure.

What will this mean for borrowers?

The National Association of Realtors said consumers will have more time to review the total costs of their mortgage before closing on a purchase. The Loan Estimate form is due to consumers three days after they apply for a loan, while the Closing Disclosure form is due three days before closing.

The Loan Estimate form shows the loan amount and interest rate, what the borrower’s monthly payment will be, estimated taxes and insurance, and how much cash is required to close.

Borrowers will face delays to closing if there are any last-minute changes with the financing of their loan (for example, switching from a fixed-rate mortgage to an adjustable-rate loan). In such cases, borrowers will face a three-day delay in the closing to allow for reviews of the new Closing Disclosure form. Borrowers will not be permitted to waive the three-day review period.
National Association of Realtors®
http://realtormag.realtor.org/daily-news/2015/09/28/closing-process-changes-what-expect?om_rid=AABRjy&om_mid=_BWCaWUB9F-f$88&om_ntype=RMODailyRead more at {Source}

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