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Comprehensive Title Insurance & Escrow Services

Are You In The Know …Before You Owe?

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As you are aware, The Know Before You Owe mortgage disclosure rule took place this past Saturday, October 3rd. Please make sure you are prepared for your client’s questions by reviewing the resources provided in this link.

CFPB LogoAs Realtors, you are trusted resources for people choosing to buy a home. New rules taking effect will change your clients’ home buying experience. Since clients turn to you for help, we want to help you ensure smooth and on-time closings with the Consumer Financial Protection Bureau’s (CFPB) guide to the new mortgage disclosures and process. This guide will help your clients to know before they owe.

Smooth and on-time closings
As you know, preparation and communication are the most effective ways you can help your clients have a positive experience when financing a home purchase. Here are five areas you may want to focus your attention, to facilitate the best experience for your clients.

New disclosures streamline the process
The Dodd-Frank Wall Street Reform and Consumer Protection Act required the CFPB to combine certain RESPA and Truth-in-Lending disclosures. So, that’s what we’ve done. Four documents have been turned into two. Now, the pages your clients see at the time of application and at closing mirror each other, so it’s easier to compare and notice changes.

Extra three-day reviews appear unlikely
Under the Know Before You Owe rule, lenders must give your clients new, easier-to-use disclosures about their loan three business days before closing. This gives your clients time to review the terms of the deal before they get to the closing table.

Many things can change in the days leading up to closing. Most changes will not require the lender to give three more business days to review the new terms before closing. The new rule allows for ordinary changes that do not alter the basic terms of the deal.

And most important… share CFPB resources with your clients
Don’t forget, clients who are engaged, prepared, and knowledgeable are most likely to achieve successful, sustained homeownership. And successful homeowners often become loyal, repeat clients who refer their friends and family.

Please give me a call if you have any questions or would like to schedule some training. 727-866-6600. 



Author: barbibozich

Manager, Sr. Closer and Client Services liaison for Title Security.

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