All you really need to know (now) about the Closing Disclosure form (“CD”)
R.I.P. “HUD”. After 4+ years of government muddling and 18 months of delays, preparation and stress- inducing industry webinars, the new Closing Disclosure Form is finally ready for public consumption. Here are the top things realtors and consumers need to know about the new form:
- The pre-qualification and pre-approval process has not changed
- Lender must provide the borrower with a written Loan Estimate 3 days after taking the loan application
- Clients must indicate their intent to proceed (or not) with their loan
- A change in circumstances (i.e. low appraisal, change in borrower credit score etc.) can result in a revised loan estimate and closing delays
- The Closing Disclosure is now due 3 days prior to closing allowing borrowers sufficient time to review their loan terms
- Sellers will receive a final Seller Disclosure that looks very different from the combined statement used in the past
Learn what has and has not changed about the mortgage process and see all sample forms on the CFPB website
Closing agents still have the discretion to use the old “HUD” on cash /non-RESPA/commercial transactions, but it is unclear at this time what forms the industry will lean toward. During this transition, working closely with your title agent will pave the way toward a smooth closing. Please call 305-803-9701 or [email protected] for more information.
