Coming in 2015: No-Surprise Mortgage Closings

New Guidelines

New mortgage guidelines, set to take effect in August 2015, will prohibit lenders from making last-minute changes to closing documents such as imposing a higher interest rate, changing the loan product, or adding a prepayment penalty to the loan.

Testing Phase

The program, still in the testing stage, would provide buyers with digital tools that explain key terms and important documents, give them more time to review mortgage documents, and make it easier to spot any errors beforehand.

“We strongly believe that electronic closing solutions, known as eClosings, can lead to more knowledgeable consumers and a much better process for everyone involved,” CFPB Director Richard Cordray said in a recent statement.

Smart Decisions

However, the new guidelines and the eClosing program won’t take the place of homebuyers’ research. From choosing a lender to signing the closing papers, buyers need to take advantage of all the tools available to make the smartest decision.

Get the full story at https://compasscaliforniablog.com/no-surprise-mortgage-closings-2015