Sedona | Verde Valley Real Estate Update
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Esther Talbert, Broker CEO Yavapai Realty, LLC         Volume II- Issue 3 | March 2015

CFPB Finalizes "Know Before You Owe" Mortgage Forms

New Law changes will affect applying for a loan and the Escrow process. 

New rules set forth by the Dodd Frank Act
putting in place the  Consumer Financial Protection Bureau  t o oversee and investigate that will affect every borrower applying for a residential loan and their escrow closing.  These new changes are effective 1 Aug. 2015


Under the Dodd-Frank law,  Consumer Financial Protection Bureau is a new agency that is self- funded by the government.  The Bureau's funding comes not from Congress but from the Federal Reserve System, up to specific caps set by the law. More here...


What is the CFPB ? (Video)


The reason there are millions of dollars in fines by  CFPB  in recent months is because they have the force to investigate which is turn has stopped a lot of companies/people from doing business the way they always have done in the past.     Wells Fargo, according to the newspaper was just fined over 36 million in fines  along with other title companies.


What does all this mean for us?
Well, effective 1 August 2015 it will affect the way we do business on a day to day basis when we apply for a loan or take a transaction to escrow and the closing process.

Two new forms that will be required 1 August 2015
Some Basics that all of us will need to know--buyers, lenders, sellers, title companies, &  Realtors.
  1. Two major form changes in the home loan and escrow closing process.
  2. The Loan Estimate form & written approval by the borrowers.
  3. The Closing Disclosure approval process in escrow
  4.  Written Approval of Closing Disclosure by the borrower &  timing.
  5. How the Loan Estimate & Closing Disclosure work together to meet the new rule by the
  6. Mandatory Longer Escrow period to allow time to meet the
    CFPB laws of lending and closing.
  7. Avoiding seller & buyer changes in the contract.
  8. Triggering a new underwriting approval after one has already been approved.
  9. Writing the contract to allow for these changes.
  10. Creating a clean, smoother closing of your escrow and sale.    ... Click here to read more .
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