You normally get several disclosure forms when trying ot obtain a mortgage. It is easy to get overwhelmed. Each of these was established by different legislation and at different times. In many cases, they offer overlapping information, which can make the paperwork even more difficult to digest. The 2015 revised mortgage disclosure documents will make the information provided to borrowers less confusing.
The New Loan Estimate Disclosure
Figures from the Good Faith Estimate (GFE) and Truth-in-Lending (TIL) will appear in a new loan estimate form. This form will provide details on the terms of a mortgage, fees involved, estimated loan payments, and other critical facts. This can be helpful for comparing multiple loan options from one company or from multiple lenders. Once you apply for a mortgage, the lender must provide you with this disclosure within 3 business days.
The New Closing Disclosure Form
The closing disclosure form outlines the costs charged in connection to the mortgage. It will combine figures provided in the settlement statement and Truth-in-Lending disclosure. There are ordinarily many different fees. To simplify it, fees are organized into different categories such as origination charges, taxes, and pre-paids. This disclosure comes near the end of the transaction; it must be provided at least 3 business days before closing.
2015 Revised Mortgage Disclosure Documents
The revised disclosures will be implemented August 1, 2015. If you fill out a mortgage application on or after August 1st, you will notice these new disclosures. This change does not apply to reverse mortgages and home equity loans. No matter which disclosures you get, you should always touch base with your mortgage consultant if you have difficulty understanding the terms that apply to your particular mortgage. The information on the 2015 revised mortgage disclosure documents in this article is provided only as a brief summary and does not cover every component of the planned changes.
