On October 3rd 2015, the Consumer Finance Protection Bureau (CFPB) implemented new regulations with respect to consumer financing. These regulations affect anyone who purchases real estate and obtains a loan (whether through a bank, mortgage broker or private lender). This video explores a few of those changes and how some of the terms we have been used to hearing for so many years in the title insurance industry are going to change.
One of the most interesting changes comes with terminology used in the process. As title agents that issue title insurance, we are well acquainted with these new terms and are sharing them with you. Something new that is explored in this video below, produced by one of our underwriters, Old Republic Title, is the use of the word “consummation.” In Florida, we are using the word Consummation in place of Closing. Additionally, while we were all used to the word “HUD” or “Closing Statement,” that term has also been replaced with the “Closing Disclosure”. While the HUD or Closing Statement might not necessarily be completed until moments before the closing, under the new regulations, the Closing Disclosure must be received by the Borrower at least three business days prior to the Consummation.
At Khani & Auerbach, it is our goal to educate the public as much as possible about these changes. We hope to provide you with useful videos over the next few months that will assist you in your understanding of these changes so that when you are ready to undertake the purchase of residential real estate, you are armed with all the knowledge to get through the transaction as smoothly as possible. We are here to help.