Greenbook: A Local Guide to Chesapeake Living - Issue 5 | Page 19

DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 05, 2015

One major change coming on Aug. 1 is that the
HUD-1 Settlement Statement is being replaced
by the “Closing Disclosure” or “CD,” which basically will summarize the terms and charges of
the loan. Lenders will be required to deliver the
CD to consumers three days prior to closing.
If any changes are needed on the CD during
that three-day period, the customers’ closing
likely will be delayed.
“Some may point to the ‘bona fide emergency’
exception and feel this is a way around the
three-day rule,” notes Ken Trepata, director
of Real Estate Services for the National Association of REALTORS®, in a recent column.

“However, the bona fide emergency must be a serious
emergency – not losing a locked-in interest rate, for example, but rather, more like one will be bankrupt if the
deal does not close. And it will have to be put in writing
in one’s own words, not a form letter. Even then, it will
have to be approved by the lender, and given the way
loans are actually made and closed, the ultimate lender
will likely not be present at the closing; so this approval
[and approval of any other changes for that matter]
will not be quick, if it comes at all.”
As of Aug. 1, the CFPB also will be combining two common forms used in lending -- the Good Faith Estimates
and Truth in Lending disclosures. The two forms will
be combined into a single form known as the “Loan
Estimate” or “LE” form. Lenders will be required to
give borrower applicants this form within three days
if they’ve collected at least six pieces of information
on customers, such as their name, income, estimated
value of property, loan amount, and more. Lenders will
be held accountable to the exact charges listed on this
form, and the loan charges listed must come within 10
percent of the actual costs.

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greenbook | spring 2015

On Aug. 1, real estate and industry
professionals should be