To help Realtors® prepare for upcoming changes to the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), the National Association of Realtors® (NAR) will host a webinar on Thursday, March 19, 2015 at 2:00 PM EDT.
The changes, which take effect August 1st, will replace the HUD-1 settlement statement, Good Faith Estimate forms, and Truth in Lending Act disclosure with a new Closing Disclosure and a new, single Loan Estimate. There will be changes to the closing process as well, including a new rule requiring everything to be in place three days prior to closing.
The new Loan Estimate (LE) must be provided within three days of closing date, after six items of information are collected:
The consumer’s name
The consumer’s income
The consumer’s Social Security Number
The address of the property
The estimated value of the property
The loan amount
The Closing Disclosure (CD) will replace the HUD-1 Settlement Statement.
The CD will restate the LE in many ways.
The CD will serve as the official settlement statement.
The CD should be delivered a full three days prior to closing.
These new procedures will preclude last minute changes at closing. The National Association of Realtors® (NAR) worked closely with the Consumer Financial Protection Bureau to avoid more dramatic alterations to the settlement process.
NAR and the North Carolina Association of Realtors® (NCAR) will continue to provide extensive education on this issue between now and the August 1st implementation date. NCAR is planning a May webinar to help Realtors® understand the new regulations and practices that will impact real estate closings and agent/attorney relationships.
CLICK HERE for more information, including a helpful video briefing from NAR.
To register for the March 19 webinar, CLICK HERE.
Source: National Association of Realtors® and North Carolina Association of Realtors®