Closing Changes Oct 2015 – Part 1
Why: Millions of people signed up for loans they did not understand and ended up losing their homes
CFPB – Consumer Financial Protection Bureau – brought into existence by Congress when it passed the Dodd-Frank Act 2010
PURPOSE: protect people from predatory lending
3 Forms at closing you are familiar with but will no longer be used:
Good Faith Estimate
Truth-in-Lending
HUD-1
These are replaced by:
Loan Estimate Form – explains mortgage terms and provides estimate of loan fees
Closing Disclosure Form – short, easy to read account of the final transaction (contains closing costs, fees & loan terms)
The Law Office of Beth Mann, P.C. 