A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Will the new Mortgage rules delay transaction closings?
On October 3rd, new rules in the Mortgage
industry that are designed to help consumers understand what they are signing
when they are buying a home go into effect. Many in the Real Estate industry are
very concerned that while these new rules are being implemented, there may be
significant delays in closings.
The changes are being implemented to simplify forms long required by the
federal government that disclose loan terms, such as a mortgage’s interest rate
and prepayment penalties. The rules also require that consumers see the final
terms at least three business days before closing, a change meant to ensure
they have time to understand what they’re agreeing to.
Lenders have been getting ready for this and have spent
billions of dollars in technology and training in hopes to make the transition
as smooth as possible, but with any new rule implementations, bumps in the road
are inevitable.
The National Association of Realtors has hosted dozens of
webinars, conference calls and training sessions with real-estate agents to get
them ready for the changes, said NAR President Chris Polychron. “Are there
going to be some blips? Yeah. Are there going to be some delays? Absolutely,”
Mr. Polychron said.
The reality is, that it is going to take time for everyone
to get used to the new rules and people have to be prepared for delays and try
not to get too frustrated when it happens.
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County
Ca.