Starting in February 2013, a “next generation” of the Dodd Frank Act will go into effect, and though it’s SUBTLE – it’s going to have a profound impact on the way mortgage companies do business.
Closings will happen 3 days after a HUD 1 is sent to a Consumer and Approved.
If you are a Real Estate Agent, or a Closing Attorney – you know that this is a really big deal. It’s not to say that some banks won’t knock this requirement out of the park… but it’s going to take a CONCENTRATED effort from everyone involved to make certain we meet the requirements with “No lates and No Uglies.”
Currently, Closing Attorneys are often getting closing packages 24 hours prior to closing – so for them to get them 4 days early, means the entire process needs to “find” an additional week for a closing to run smoothly.
If a loan officer asks for a document – as a consumer you need to find the document (no matter how silly) and provide it as quickly as possible. Everyone on the Homebuyer Team is going to need to work in sync. The Homeowner’s Insurance Company will need to provide policy info a little earlier – the Attorneys will need to be a little quicker with title work, Title Insurance Companies will need to operate a little differently – and we need to all remember that RIGHT before closing – the underwriter is pulling a credit report again).
It’s going to make for some interesting closings in the month of February – it shouldn’t take too long for all of the systems to work out – but while they are “getting” worked out, be aware of the changes and the need for Speed.
If you have questions about buying a home in Raleigh, how having the HUD 1 approved 3 days early per Dodd Frank could affect your closing, or you if you are looking for the best rates to refinance your mortgage – please call Steve and Eleanor Thorne 919 649 5058
What are the consequences to a lender that misses the closing date? For example, I currently have a cash buyer in escrow on an REO that was scheduled to close at 1:00 p.m. today. The HUD-1 was sent for approval last Friday but it is not approved yet. My client has obligations the rest of the day. Why should my client be asked to change his plans to accommodate a lender who was not proactive? One of the stipulations is that a cash buyer must close on or before the closing date and no extensions will be granted. If the lender doesn’t perform, why should my client be held accountable? What legal remedy(ies) do(es) my client have when the lender doesn’t perform according to Dodd-Frank?
I am not an attorney – however, I can tell you that this particular ruling has not gone into effect yet.
Appreciate the recommendation. Willl try it out.