New Rules Help Lending Transparency
October 30, 2015
Greek philosopher Heraclitus once said, “Change is the only constant in life.” Over the past few years nowhere has this been more evident than the banking industry. In response to the 2008 financial crisis lawmakers passed The Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. It is the most comprehensive financial regulatory reform measure taken since The Great Depression and with it came many new rules and regulations that govern consumer real estate lending.
On October 3rd a new rule, The Truth in Lending-RESPA Integrated Disclosure Rule or TRID, concerning the disclosures and information you will receive in conjunction with applying for and obtaining a residential mortgage loan went into effect. These new rules are meant to provide you with clear and concise information about your loan and the charges and fees associated with it.
Some of the new rules greatly resemble the old rules. When applying for a residential mortgage loan you will receive information shortly after submitting the application to your bank that will provide you with the facts you need to shop around and find the best deal for you. But some of the new requirements are quite different than the old rules. For instance, if your loan request is approved and you proceed with the deal, you will receive a Closing Disclosure three days prior to sitting down at the closing table. This closing disclosure will detail the specifics of your transaction and will provide you with the final fee amounts and the amount of cash you are required to bring to the closing table to consummate the transaction. The goal is to eliminate last minute surprises and make the mortgage lending process more transparent.
At Bank of Little Rock we realize there are few things as stressful as buying a new home or refinancing an existing one. All the forms associated with a mortgage loan can be very intimidating. So, our goal is to make the process as easy and as stress-free as possible. That’s why we have done our homework and made sure our staff is prepared to help you through the process. We are simply people helping people, and we want to help you have a pleasant home loan experience.