Mortgage Disclosure Laws Are Changing!

Mortgage Disclosure LawsWhat you need to know about the recent changes to mortgage disclosure laws.

Just five days ago, everything changed in the mortgage industry. On October 3rd, a new law took effect that shifted the information mortgage lenders are required to give consumers.

The new disclosures are known as the TILA-RESPA Integrated Disclosures and are intended to make it easier for the average consumer to understand their home loan. As lenders adjust to the new regulation, though, it has the potential to slow down the process for consumers.

To help you be informed about what the new mortgage disclosure laws mean for your home loan timeline, here’s a look at the timetable for the two documents they enforce: the Loan Estimate and Closing Disclosure.

  • Loan Estimate: Your lender is required to give you an estimate of your loan rate, its term, associated fees, and other information in a Loan Estimate within three days of your application. Lenders can send this out via mail three days later, though, so it could take a couple of additional days to reach you. If you’re on a tight timeline, ask if your lender can electronically send your Loan Estimate.
  • Closing Disclosure: This document mirrors your Loan Estimate, but with the exact figures you’ll get with your loan. Your lender is required to give this to you at least three days before closing. Sundays and holidays don’t count in that three-day period, though. Anticipate this waiting period when estimating your closing timeline.

Do you have questions about the new mortgage disclosure laws and how they could affect your closing process? To ensure you get the information you need to keep everything on schedule, contact Avis Lending. With offices conveniently located in Irvine, California and Lahaina, Hawaii, we are here to offer you information and guidance on all of your West Coast mortgages.


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