Big RESPA Changes – October 2015 – Part 3

Closing Changes Oct 2015 – Part 3


Lenders start the loan process by asking borrowers on loan app for specific info;

Names & Socials of all borrowers


Property value, address

Amount of loan

After this info is provided

The lender has 3 business days to use the information and generate a loan estimate

The borrowers then are required to start the underwriting process by giving the lender a signed intent to proceed


Lenders could gather documentation from a borrower and the borrower could pay for an appraisal before providing a good faith estimate

NOW *****  lenders can only charge for credit report

***** No info provided from a borrower can be verified until after the loan estimate has been created & borrower has singed an intent to proceed form.


The 3 day clock for lenders can RESTART MULTIPLE times until all info is there & the borrower has time to look at it

Means – SLOWER

BUT -****Borrowers won’t be put in the position of getting to a closing and being told they need more $$ before the end of the day to close.

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