Coming October 3

BlogImage-2015pComing October 3!

Do you know about the changes coming on October 3rd? If you are currently in the process of or thinking of buying or selling Real Estate soon you should read this!

TRID (TILA-RESPA Integrated Disclosure)

Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA)

In November 2013, the Consumer Financial Protection Bureau (CFPB) integrated the Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA) disclosures and regulations. Any transaction involving a mortgage will use new CFPB disclosure forms.  The effective date for implementation is October 3, 2015.

What does this mean to you?

New forms

The Loan Estimator (LE) and Closing Disclosures (CD) will replace the current HUD statement.  The HUD-1 Settlement Statement is a standard form in use in the United States of America which is used to itemize services and fees charged to the borrower by the lender or broker when applying for a loan for the purpose of purchasing or refinancing real estate. HUD refers to the Department of Housing and Urban Development.

Why? Consumers felt the HUD was hard to read (true!)

Additionally, consumers felt they didn’t have enough time to review the documents. (also true!) In my experience, especially during the whirlwind of 2015, rarely did my clients have a chance to review the statement prior to sitting at the closing table.

Impacts to Closing

The borrower must receive the Closing Disclosure three (3) business days prior to closing. It is considered to have been received three (3) business days after placing in the mail. Therefore, generally the lender will need to mail the initial closing disclosure at least six (6) business days prior to consummation.  This change, while beneficial to the borrower, does put emphasis on timeline targets. Borrowers will be required to sign acknowledgement of receipt of the CD.

Real Estate Agents can help speed the closing process by providing the lender with certain pieces of information which are needed to prepare the disclosures.

Bottom Line

Unless you are purchasing a home with cash, do not expect to close any sooner than 45 days from the day of an accepted offer.  This may eventually get back down to the 30 day close time, but for now we will need to be patient.

For more information go to the Consumer Financial Protection Bureau.

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Did you hear the news?

So you’ve probably heard the news from last week that two big players in the real estate industry, Zillow and Trulia, have merged.  In their announcement, they stated that they will continue to operate as separate entities, for now.

But what does this mean to you?

For consumers, you most likely will not notice anything different when you search for homes on Zillow or Trulia.  I would speculate that in the very near future, the two will streamline their processes and present an even better user experience. They will continue to develop tools to aid in your home search and also advance their mobile apps.

What does this mean for the industry?

It used to be that you needed an agent just to find out what was on the market.  Real estate agents before the time of the Internet were basically gatekeepers to the MLS data.  Now that data is easily accessible through sites like Zillow and Trulia.

So as agents, we now need to bring more to the table.  What we can offer is what I refer to as REAL data.  It is the local expertise that you can’t find anywhere else.  It is the deep knowledge of an area where we know exactly how far the school bus stop is and where to find the best eatery close by. Growing up in Boise has definitely given me leg up over other agents!

ZThumor

The bottom line is that you, as consumers, are better informed with the existence of Zulia, but you’ll still know to call the experts in when it’s time to make a move!

Hope you are all enjoying the last few weeks of summer!  The dog days are definitely upon us!  My family is busy trying to fit in the last few summer outings to the zoo and one last camp trip before school starts. Oh, and yes, soccer practice has begun!

Feel free to contact me with any questions!

As always, I’m never too busy for your referrals.

Here are a few blog posts I found interesting:

Great Ideas for Summer Hostess Gifts

Bathroom Design-off

Tool of the month – Picmonkey.com
This site is so fun and easy to use!  Just upload a favorite photo and apply text, borders, themes, and loads of other fun effects.