REALTORS® say they plan to change their purchase agreements to allow for a longer timeline for the closing process due to the upcoming changes from new mortgage disclosures rules.
Starting on Oct. 3, the TILA-RESPA Integrated Disclosure rule is to go into effect, which will merge the HUD-1 Settlement Statement, the Good Faith Estimate, and the Truth-in-Lending disclosure form into two new closing forms: a Loan Estimate and a Closing Disclosure. The new rule also aims to provide consumers with more time to review the total costs of their mortgage prior to closing. The Loan Estimate form is due to consumers three days after they apply for a loan, while the Closing Disclosure form is due three days prior to closing.
The current HUD-1 settlement form can be revised and delivered up to the day of settlement, but the new mortgage forms must be finalized and in the borrower’s possession three days prior to closing. If that deadline is not met, borrowers will receive another re-issuance of the closing disclosure and wait another three days.
As such, some real estate professionals are extending their contract timelines due to the uncertainties of dealing with the new regulations, says Ken Fears, NAR's director of regional economics and housing finance.
Eighty-two percent of real estate professionals say they've taken some training to prepare for the TRID rule.
Source: "Real Estate Agents to Extend Contracts for New Mortgage Disclosures," National Mortgage News (Sept. 1, 2015) and "REALTORS® Train for TRID," National Association of REALTORS®' Economists' Outlook
Thursday, September 3, 2015
This September a Great Month for Buyers
Buyers who are willing to close on a home purchase during the off-peak seasons – like fall and winter – tend to have the upper-hand, according to Jonathan Smoke, realtor.com®'s chief economist. September, in particular, is the best month of this year to sign a contract to purchase a home, according to his analysis.
For one thing, supply is rising, providing home buyers with more choices of homes for sale than they've had in the past 10 months. In the third week of August, inventory was at 1.91 million units, an increase from 21 percent since January, according to realtor.com®.
"Normally inventory peaks in August and begins to slow as the nights grow longer," Smoke says. "But this year the typical seasonal decline will start a bit later. There will be more choices in September than any other month in 2015."
Also, he says that overall demand is down now that the school year has started so buyers will provide less competition this month too.
"And, of course, with less competition for the most listings all year, pricing power weakens as inventory takes longer to sell," Smoke says.
As an added incentive to home buyers, mortgage rates are remaining low, for now. The 30-year fixed-rate mortgage ended the week under 4 percent due to recent stock market turbulence. In June, 30-year rates were averaging 4.2 percent, but have since fallen.
Source: Daily Real Estate News
Realtor®Magazine
For one thing, supply is rising, providing home buyers with more choices of homes for sale than they've had in the past 10 months. In the third week of August, inventory was at 1.91 million units, an increase from 21 percent since January, according to realtor.com®.
"Normally inventory peaks in August and begins to slow as the nights grow longer," Smoke says. "But this year the typical seasonal decline will start a bit later. There will be more choices in September than any other month in 2015."
Also, he says that overall demand is down now that the school year has started so buyers will provide less competition this month too.
"And, of course, with less competition for the most listings all year, pricing power weakens as inventory takes longer to sell," Smoke says.
As an added incentive to home buyers, mortgage rates are remaining low, for now. The 30-year fixed-rate mortgage ended the week under 4 percent due to recent stock market turbulence. In June, 30-year rates were averaging 4.2 percent, but have since fallen.
Source: Daily Real Estate News
Realtor®Magazine
Subscribe to:
Posts (Atom)
.jpg)
Posts
