New Changes to Buying & Selling. By Jen Hudson

The Consumer Financial Protection Bureau (CFPB) is going to make changes.  First, you’re probably thinking… the what?  The CFBP is a congress-established agency with regulatory control over the federal consumer protection laws.  You may pick-up on my opinion about them in this article… like the fact that they make up their own rules, don’t answer to anyone, sue banks when they want money, and make many changes that end up costing the consumer money… But who is counting.

Regardless, the CFBP is about to implement a new set of rules aimed at helping buyers and sellers have a better understanding of the borrowing process.  This includes two new documents and time frames with waiting periods for review.

  • Buyers will receive a LOAN ESTIMATE document which will outline variables such as the loan type, payment schedule, interest rate, prepayment penalties, etc. This document will need to be provided to the loan applicant within 3 days after submitting a loan application.
  • Buyers will also receive a CLOSING DISCLOSURE no LESS THAN 3 days before the loan is scheduled to close, which will include the same information outlined above.

These changes are actually good and in theory will make the loan easier to understand.  The biggest thing to note is that beginning in August this year (or possibly October since the CFPB is talking about another change already), a buyer will have a mandatory 3 day review period.  In real life, this means that agents, lenders, and escrow will need to work diligently to make sure the file is ahead of schedule when it comes time to close.

If you are buying or selling anything over the last part of this year, be prepared and anticipate delays as lenders adjust.  It will save you from the frustration later.  Oh, and make sure you are working with an agent who is aware of the changes.  Many of them have no idea what will be coming later this year.  It’s actually a significant change from how we operate today.

If you want some additional ideas on what might be beneficial to your particular property, give me a call at (206) 293-1005 or email:  We’ll see how we can increase the property value, green up the environment, and keep some green in your pocket all at the same time.


Leave a Reply

Your email address will not be published. Required fields are marked *