Orange Realty - T. Trabucco
Connect Via:
  • Home
  • Home Search
    • Featured Listings
    • Property Search
    • Rental Listings
    • Park Orleans Condos
    • Mortgage Calculator
  • Sellers
  • Vendors
    • All Trades / Vendors
    • Building Contractors
    • Electricians
    • Flooring Contractors
    • HVAC Contractors
    • Locksmiths
    • Painters
    • Pest Control
    • Plumbers
    • Roofers
    • Termite Remediation
    • Woodworkers
  • Links
  • Reviews
  • About
    • Contact Tony T.
  • News
    • Market Stats - Old Towne
    • Market Stats - City of Orange
    • Market Stats - Orange County
    • Land Use Planning Applications - Orange
  • Blog

New Truth in Lending Act Procedures and Forms

6/3/2015

0 Comments

 
PictureClick to Enlarge
On August 1, 2015 buyers, sellers, Realtor, lenders, escrow companies, moving companies, and generally anyone involved with the purchase or sale of a property, and its aftermath, will be impacted by the new Truth in Lending Act (TILA) requirements.

On the surface, the revised forms and timeframes are designed to assist consumers in making informed choices -- that's a good thing.  I can speak from experience -- when I purchased my first home in the mid 1980s (from the builder) no one mentioned anything about "closing costs".  When escrow called me to have me bring in my funds a few days prior to closing, the number that that quoted me was wildly above my expectations -- I had to scramble to come up with a few extra thousand dollars that I wasn't anticipating -- all very stressful!  And it's not uncommon to meet with first time buyers today who, after learning of the incremental impact of closing costs, elect to put things off for a few more months while they save up the necessary funds.

The new forms should be more straightforward for buyers to understand (I use a spreadsheet that I've developed to essentially accomplish the same objective - to lay out ALL of the expected upfront and monthly costs involved with purchasing a home) and is to be delivered by the lender to the buyers no later than 3 business days after the loan application is completed/signed.  No problem there.

Where the industry might run into issues is with the final set of paperwork required to be delivered to the buyer, which compares the initial estimates with the actual costs -- again, a good thing for consumers (and in an easy to understand format).  Where the law of unintended consequences might strike, is that it must be delivered to the buyer at least 3 business days prior to loan docs being signed.  While it sounds good in theory, it may cause some issues.  A last minute credit from Seller to Buyer that changes the APR by more than 1/8th of a point? New TILA documents and a new 3-day waiting period.  "But wait a minute, I've got the movers scheduled for this weekend!"  Sorry, you will need to reschedule (if you can).  "Escrow forgot to credit me the $$ that we negotiated for repairs!"  Oops -- new TILA documents may have to be sent out -- another 3 day waiting period goes into effect.   Factor in 2 or 3 houses that need to close concurrently so that buyers and sellers can "move-up" and the situation gets even worse!

It will be interesting!

Click here for additional information.

0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Author

    Tony Trabucco is a real estate Broker who lives in Old Towne Orange, CA

    Picture

    Categories

    All
    Chapman University
    Drought
    Finance
    Miscellaneous
    Old Towne Orange
    Real Estate

    Archives

    April 2025
    February 2024
    August 2023
    May 2023
    April 2023
    October 2022
    October 2021
    November 2019
    July 2019
    May 2019
    January 2019
    November 2018
    August 2018
    March 2018
    February 2018
    December 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    January 2017
    October 2016
    August 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015

    RSS Feed

Tony Trabucco
Orange Realty, Inc.
1537 East Chapman Ave
Orange, CA 92866
714.288.9369
[email protected]
​CA DRE Lic #: 00982321