Good News On Closing Disclosures
Isn't it frustrating when you are not able to review the Closing Disclosure prior to closing? Last October 3rd, the Closing Disclosure replaced the HUD-1. Prior to that date, REALTORS® reviewed and explained the HUD-1 with their Buyer or Seller. The process eliminated many problems in advance of the closing date.
After the Consumer Finance Protection Bureau (CFPB) introduced the Know Before You Owe initiative, lenders and closing agents could not provide the Closing Disclosure to Realtors due to privacy concerns.
On Friday, the CFPB announced they are revising that rule stating, "The Bureau understands that it is usual, accepted, and appropriate for creditors and settlement agents to provide a closing disclosure to consumers, sellers, and their real estate brokers or other agents." Once the proposed change takes effect it will allow REALTORS® to continue to provide the professional service their customers expect.
Three other changes to the closing procedures will allow housing finance agencies to charge recording fees and transfer taxes without losing existing exemptions for disclosure requirements, extend the Know Before You Owe requirements to transactions involving co-op units and restore treatment of finance charges to the way they were treated prior to the Know Before You Owe changes.
Written By: Kathy Zorn