New Mortgage Lending Rules Coming August 1

august1

 

 

 

 

 

The latest changes — effective Aug. 1 — involve new forms and notification timelines that make the home-buying process more transparent. However, they also are expected to make 45-day closings the new norm experts say mortgage experts.

Currently, when buyers seek a loan to buy a house, they are provided with a Good Faith Estimate form and a HUD-1 Settlement Statement form at closing. Both of these forms are being replaced by new forms, the loan estimate and closing disclosure. The first page of both forms will clearly outline to the consumer and lender  how much the buyer will pay in closing costs, loan fees, mortgage payments, interest and taxes.