New tool for Buyers from CFPB – Know before you owe Initiative

Few weeks ago, I posted about the new rules which are implemented by CFPB to help consumer with the mortgage closing process.

With the arrival of new rules and forms that will rewrite the closing process just a few weeks away, Consumer Financial Protection Bureau (CFPB) joined National Association of REALTORS®’ 2015 to unveil online tools designed to help consumers and agents navigate the Know Before You Owe initiative.

The implementation of the Truth in Lending Act – Real Estate Settlement and Procedures Act Integrated Disclosure rule (TRID), which the CFPB calls the Know Before You Owe initiative, is expected to bring sweeping changes to the real estate industry. It will merge the existing HUD-1 Settlement Statement, Good Faith Estimate, and Truth-in-Lending disclosure form into two new closing forms: a Loan Estimate and a Closing Disclosure.

The new online tools—included in the CFPB’s “Owning a Home” website—expand on a detailed brochure about buying a home that the CFPB introduced in March, and which the agency will require lenders to give to borrowers.

“When you as a consumer shop for a great home, you should also be shopping for a great mortgage loan, and with the same amount of care,” Gene Koo, the CFPB’s assistant director of consumer engagement, said during an event at NAR’s Washington offices. He added that the agency would like consumers to be able to compare mortgages as easily as they can learn about foods from nutrition labels. “We’re eager to get these resources into the hands of consumers, and we hope that you will use them yourselves and with your clients.”

The additions to the CFPB website include:

a guide to each phase of shopping for and obtaining a mortgage,
a detailed worksheet to help households calculate the cost of owning a home and determine what they can afford given their other expenses,
and an interactive look at new the Loan Estimate and the Closing Disclosure—the two forms they will encounter after the new closing rules take effect on Oct. 3.

About Vijaianand Thirnageswaram

I am a Proud Realtor of Texas, trying to guide and help clients to find their dream home and educate them to buy them for right price. I am also a Candidate for CFP who has more financial knowledge which allows me share and educate clients in any financial decision making process.

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