WASHINGTON – Sept. 18, 2015 – The Consumer Financial Protection Bureau (CFPB) released new online tools for its Know Before You Owe initiative yesterday to help consumers navigate mortgage process changes that occur on Oct. 3, 2015.
The Mortgage Bankers Association issued a separate consumer-friendly set of instructions last week.
“Homebuyers will ask their Realtor about the mortgage disclosure changes – what they should expect,” saysMargy Grant, Florida Realtors vice president and general counsel. “And while Realtors must understand the impact on closings – such as the dates when certain documents must be submitted to close on time andchanges to some Florida Realtors forms – a mortgage is still an agreement solely between a buyer and his or her lender.”
The CFPB offers help to buyers in a number of ways, including brochures, videos and infographics. In addition to explaining the new disclosures, CFPB includes a step-by-step overview of the mortgage process, a tool to help homebuyers decide how much they can afford to spend, and samples of the new Know Before You Owe mortgage forms, the Loan Estimate and the Closing Disclosure.
“Realtors play an important role in keeping consumers educated about changes in the home buying process, and that includes rules related to the Know Before You Owe initiative,” said National Association of Realtors® 2015 First Vice President-Elect Elizabeth Mendenhall, who joined CFPB Director Richard Cordray to announce the new tools.
“The journey to homeownership begins with Realtors, and CFPB’s new online tools are a great resource for agents to help clients shop for a mortgage and prepare for the changes coming their way,” Mendenhall said.
The Loan Estimate includes early estimated loan and closing costs so buyers can compare different lenders offers. The Closing Disclosure, which arrives within three days of closing, details the final transaction numbers. The three-day time period allows consumers to confirm that they’re getting what they expected, ask questions and negotiate any changes.
The Loan Estimate and Closing Disclosure also mirror each other, which CFPB says will help buyers compare their initial estimates to the final loan terms.
The CFPB first launched “Owning a Home” in January but recently added new tools to help consumers navigate the mortgage experience.
© 2015 Florida Realtors®