We have been reading for months about the new disclosure forms that are intended to simplify the mortgage process for borrowers, enabling them to quickly locate important information about their loans. However, many real estate professionals are concerned that the implementation of these new rules will lead to additional delays, thereby lengthening a process that is already much too long.
As we know, the new rules consolidate the disclosure requirements from the former Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) into the TILA-RESPA Integrated Disclosure (TRID) regulation and they mandate that consumers must be given a new combined estimate, containing all charges, line items and costs, prior to closing. This replaces the overly complicated settlement statement commonly referred to as the “HUD.”
While in theory these changes sounds great, and many attorneys applaud the death of the HUD, the difficulty comes in the timing. All borrowers must now receive closing disclosure documents at least three (3) business days prior to closing. Since they must be mailed to the borrowers at least three (3) business days prior to the intended receipt, we are actually looking at a six (6) business day delay, assuming, of course, that the attorneys handing the transaction have provided the lender with all the information needed to generate the disclosure documents quickly, accurately and completely.
So how can your experienced Westchester real estate attorney help to assure this 6 day delay does not become a 10 or 14 day delay? The answer is simple. Your attorney should be proactive and provide your lender with the necessary information at the inception of the deal or as soon as possible thereafter.
Such information includes the following: the names and addresses of all parties to the transaction; the sales price and whether any part of that price is allocated to personal property; the amount(s) of the transfer taxes and who is to pay them; the contract deposit and any seller credits or concessions; realtor commissions and the percentage allocation among agencies; a detailed breakdown of all title charges (including the cost of a survey if necessary); the homeowner’s insurance premium, and any and all adjustments for property taxes, fuel and/or water, and all legal fees associated with the transaction.
This way your lender will have the assistance it needs in or to meet the advance disclosure deadlines and get you to closing just as soon as possible. If this seems complicated, the best antidote is to hire an experienced Westchester attorney, whether you live in White Plains, Scarsdale, Ardsley, Eastchester, or any of the numerous, towns, cities, and municipalities in the Westchester County region.