'Know Before You Owe' Delays Minimal So Far, Say Realtors®
San Diego (November 13, 2015) — Months of preparation and training paid off for Realtors® as the implementation of new closing documents known as the Real Estate Settlement Procedures Act and Truth in Lending Act Integrated Disclosure enters its second month with minimal delays.
That's according to panelists at the "RESPA-TILA Know Before You Owe Rule: Regulatory Issues Forum" during the 2015 REALTORS® Conference & Expo, happening this week in San Diego.
On October 3, 2015, the TILA-RESPA Integrated Disclosure Rule took effect as part of the Consumer Financial Protection Bureau's ‘Know Before You Owe' initiative. To offer greater transparency into the mortgage and closing process, a single Loan Estimate document has replaced the Good Faith Estimate and Truth in Lending disclosures. This document must be given to consumers within three business days of applying for a loan. A new Closing Disclosure form has also replaced the HUD-1 Settlement Statement and the final Truth in Lending disclosure. That form must be given to consumers at least three business days before closing.
Panelists shared their insights into the rollout and implementation process and included Patricia McClung, assistant director for Mortgage Markets at the CFPB; Karen Crowson, chair of NAR's Regulatory Issues Forum; Stephen Hoover, vice chair of NAR's Regulator Issues Forum; Don Chiesa, vice president of National Loan Production at Quicken Loans; Anthony Lamacchia, broker/owner of Lamacchia Realty in Waltham, Massachusetts; and Maria Lau, sales division manager of Waco Title in Waco, Texas.
"Realtors® worked hard to get themselves educated about and ready for Know Before You Owe, and that work seems to be paying off," said NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Arkansas. "We are pleased that closing delays and other harmful effects resulting from the new rules have been reportedly few in number so far. Nonetheless, as the new rules continue to take hold, we anticipate there could be bumps in the road."
"NAR will continue to monitor the implementation of ‘Know Before You Owe,' communicate Realtor® concerns to the CFPB, and work to help ensure on-time, efficient closings for consumers," said Polychron.
NAR conducted a range of activities to communicate impending changes during the run-up to October 3, including hosting a webinar on the new rules and joining the CFPB at an event highlighting new tools to help consumers and Realtors® acquaint themselves with the new forms and processes.
NAR also worked closely with the CFPB to win important concessions related to the rule. These included delaying implementation several months to accommodate the busy summer buying and selling season and pushing the CFPB to show "sensitivity" towards good-faith-actors working to comply with the new rules in the early stages of implementation.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
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