Big RESPA Changes – October 2015

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)

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