Are you unsure how to best prepare your clients for closing in light of the new rules set out by the Consumer Financial Protection Bureau(CFPB)? We’ve got you covered!
Below are seven tips to help you and your client prepare for the changes effective October 3rd, 2015.
- Encourage your buyer to remit financial documents to the lender voluntarily for pre-approval
- When considering an offer on a listing that includes a pre-approval letter, confirm the following with the lender:
- pre-approval was based on more than a credit score
- proper verification documents were obtained
- Set realistic expectations with your clients regarding the timeline to close and emphasize items now required earlier in the closing process such as the buyer’s choice for the home warranty company
- When writing a contract or considering multiple offers, confirm a realistic closing time-frame with the lender.
- Become familiar with the new closing documents; Independence Title will be utilizing the following documents for TRID transactions:
- Borrower’s Closing Disclosure
- Seller’s Closing Disclosure
- ALTA Settlement Statement
- Texas Disclosure
- To ensure proper commission disbursements due to the new Texas Disclosure, remit your disbursement authorization form to the title company well in advance of closing
- Mark your calendar to keep track of the closing disclosure timelines for each transaction
Below are seven ways we’ve worked to ensure continued smooth closings for your clients. We have:
- the largest education & training department in our industry in Central Texas
- taught over one thousand classes on the new regulations and implementation to the REALTOR and lender community
- updated our online calculators to comply with CFPB and TRID regulations and provide accurate estimates
- completed software updates to our closing systems that integrate with lender portals allowing for back and forth communication of fees, documents and instructions
- trained all Escrow staff to prepare and are ready for your next transaction
- proudly become the first title company to implement a Best Practice Policy Guide to comply with CFPB requirements
- continued to provide resources for the real estate and lending community to communicate with clients such as A Consumer’s Guide to Buying or Selling After October, 3, 2015 and Why You Need Title Insurance