The Consumer Financial Protection Bureau implemented new mortgage requirements on October 3, 2015, that are designed to help make the mortgage process easier to understand. Lenders across the country are putting into place a few key changes to help simplify the mortgage application process. These new requirements mean that you’ll be receiving new forms that will make it easier for you to shop and compare mortgage loans.
This new form, replacing two separate forms, will be used by lenders to make sure that you fully understand all aspects of your loan. Because you’ll receive this form shortly after you apply for a mortgage, you’ll be able to compare loan options and make the best decision for you. See a sample form here on the CFPB website.
If you tell us that you’d like to proceed with a loan, we will then provide you with a Closing Disclosure at least three business days before your loan’s closing date. This gives you time to review the details and make sure that there aren’t any surprises at your closing. See a sample form here on the CFPB website.
These new changes in mortgage applications are intended to help make the process easier and more transparent, and allow you to shop for the best loan by comparing “apples to apples.” The CFPB offers some great additional resources for home loans on their website, including a Home Loan Toolkit outlining the entire application process.
If you have any questions about these changes, or home loans in general, please email us or give us a call at 1-800-464-0253. We’re happy to help!