Effective July 31st, new RESPA (Real Estate Settlements Procedures Act) changes are coming to the mortgage industry that will change the way mortgage loans are processed. The new guidelines will require a client to receive their settlement statement four days prior to closing. This means lenders will need to have closing packages to the title company six days before a closing. That makes a 30 day closing essentially a 24 day or less closing, depnding on how quickly the client acts to begin the mortgage process. Another and more impactful change is that the settlement statement must match the initial good faith estimate, otherwise a new disclosure is required along with a new four day waiting period.
CityLife Lending will be working to redisclose a final Good Faith Estimate seven days before closing. This should ideally address any changes in title, closing or lender fees and eliminate any potential obstacles. Should you have any questions about these changes, don’t hesitate to contact one of CityLife Lendings Home Mortgage Consultants.