Getting Familiar with the New Closing Disclosure

Now is the time to get familiar with the new Closing Disclosure rules.

Dear Fund Member:

Can you believe we are coming up on February already? It has been a busy beginning to the New Year for everyone. For me, the main focus here at The Fund is the new RESPA-TILA integrated mortgage disclosure rules set to take effect August 1st.

With August 1st fast approaching, NOW is the time to begin the process of becoming familiar with the new rules. As I indicated in my December email, it’s not all about the new Closing Disclosure form – it’s about a whole new way of closing residential real estate transactions.

“3 days is really 7 days.” Because the new rules require that the completed Closing Disclosure (the “new” closing statement form) be delivered to the buyer/borrower at least 3 business days prior to closing AND because some lenders have decided to both prepare and deliver the CD, the settlement agent will be expected to provide the lender with the information needed to complete the CD. The lender will know its costs, of course, but you will have to provide all of the other information to complete the CD (ad valorem taxes, recording fees, condominium or HOA assessment information, survey fees, inspection fees, etc.). The lender will want this information in advance so that the CD can be delivered in a timely fashion. Because of the “mailbox” rule, the lender will likely want to send the CD to their borrower 6 days prior to closing, so they will need the information from you at least 7 days prior to closing.

Wow! This is a whole new concept to the closing process. But, it’s not too late to get started on learning the ins and outs of this new process, making the transition seamless and a more pleasurable experience for everyone involved.

As a Member, The Fund offers you a variety of tools and resources to begin the learning and transition process. There is a webinar on the new Closing Disclosure that you can download and watch anytime. You can also visit The Fund’s Readiness Page for a wealth of information about the new rules, links to the CFPB website, and links to Fund Concept articles. It’s not too late to register for the Pre-Assembly Workshop on the Closing Disclosure or to register for our biggest event of the year: The Fund Assembly being held May 7th – 9th in Orlando. Affiliate Assembly is also another opportunity to continue the training process.

We have an exciting year ahead of us. Stay tuned for future emails on topics such as Vetting of Settlement Agents, The New Way You Will do Business with Real Estate Agents and Lenders, Waiver of the 3 Day Notice Requirement, and many others!

As I get further into my new role as General Counsel, I am meeting so many wonderful and supportive Members, and I look forward to meeting many more of you. On behalf of The Fund, we appreciate all that you do to make sure that your clients and the public are the recipients of high quality, professional, and ethical services.

Best Regards,

Melissa Jay Murphy
Senior Vice President
and General Counsel