FAQs About the New Mortgage Rules
Here are a few common questions that loan providers are getting about the new loan documents and TRID rules:
Will these changes affect how my loan is handled? Yes, it will affect how your loan is handled, but most of the changes are behind the scenes. The two changes that will affect you the most are the new documents (Loan Estimate and Closing Disclosure) and the time allotted for you to review those documents (you’ll receive the Loan Estimate within three days of application and the Closing Disclosure three days prior to closing).
Will my loan take longer to close? No, it shouldn’t take longer. After the initial implementation, the kinks needed to be worked out, but the new process has been smoothed out. According to several interviews with lenders and brokers, the process took some getting used to at first, but they’re serving their clients just as well as they did before.
Do these changes affect all types of mortgages? The changes affect most types of loans, but not all of them. Some of the types of loans that don’t fall under the new rules include home-equity lines of credit, reverse mortgages, and a few other less-common types of loans. For the average borrower, however, the new rules and new disclosure documents will be a required part of the process.
If it’s just a few new forms, why is it a big deal? This is the biggest change in the mortgage industry in quite a while. To prepare for these changes, software and systems needed to be redesigned, employees needed to be trained, and the entire industry needed to get on the same page fairly quickly. The changes were minimal for borrowers, but they were huge for mortgage providers.
If you have other questions about the new rules, contact your mortgage professional.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988. Licensed by the Commissioner of Banks - License No. MB2671