The Consumer Financial Protection Bureau (CFPB) announced it will work with lenders and others who are trying to comply with new mortgage lending rules that will take effect in October to support a smooth transition for the mortgage market.
In just a few days days, CFPB will institute new rules regarding disclosures under the Truth in Lending Act and Real Estate Settlement Procedures Act that will affect all home builders, particularly those with a real estate lending arm.
Under the new rule, the biggest change is that the Closing Disclosure must be provided to the consumer a full three days prior to the closing, and if there are changes during that 72-hour period, the closing could be delayed.
Currently, the HUD-1 Settlement Statement can be presented to the buyer on the day of closing and any changes to the statement can take place during the loan closing.
In addition, the Loan Estimate must be delivered to the prospective buyer no later than three business days after receiving the application.
NAHB and other real estate leaders, along with members of Congress, have raised concerns that the abrupt switch on Aug. 1 will cause confusion and unanticipated disruptions. We have urged the CFPB to provide a good-faith enforcement grace period for the rule as the industry adapts to the new disclosure requirements.
The Greater Hattiesburg Homebuilder Association, a chapter of the National Association of Home Builders, serves licensed builders, associates of the construction industry, and consumers in Marion, Lamar, Forrest, Covington and Perry counties. Our association focuses on formal builder education (MSBOC licensure and CPB certification), informing builders of market news,and giving builders the tools to respond to prospective legislation through our state counterpart, the Home Builders Association of Mississippi.
Membership in our association keeps builders accountable to consumers. The Greater Hattiesburg Home Builders Association is the name consumers trust when they look for a contractor.