CFPB issues proposals to update Integrated Disclosure Rule
The Mary Ellen Vanaken Team - 678.866.1935
CFPB issues proposals to update Integrated Disclosure Rule. The Consumer Financial Protection
Bureau recently published recommendations for updating the Integrated
Disclosure Rule, which is under the Truth in Lending and Real Estate
Settle Procedures Acts.
The rule's purpose is
to supply easy-to-understand disclosures for
borrowers when they complete a residential mortgage application. The
CFPB proposed two changes to the Integrated Disclosure Rule:
One
change is in regard to construction loans. Given the longer time it
takes to close one of these loans compared to other loans, the estimated
charges can change after 60 days. "Our proposal would create a
space on the Loan Estimate form where creditors could include language
informing consumers that they may receive a revised Loan Estimate for a
construction loan that is expected to take more than 60 days to settle,"
the CFPB said.
The
second change would give creditors more time
to give borrowers a revised loan estimate after the latter locks in a
floating interest rate. The current turnaround period is limited to the
same day, and the CFPB proposed extending that time to the next business
day. This strategy would give creditors adequate time to produce new
disclosures while giving borrowers more time to lock in their rates.
Mortgage market becomes more favorable. The
CFPB's proposed changes to the Integrated Disclosure Rule are welcome
news for consumers who want to get a US home mortgage while clearly
understanding their obligations in receiving financing to buy a home.
Although borrowers will have to wait until Aug. 1, 2015 to see the rule
in affect, they currently can get some relief in
getting a mortgage via low interest rates. Here are the findings of the latest Primary Mortgage Market Survey by mortgage insurer Freddie Mac:
· The
average interest rate for a 30-year fixed mortgage was 3.97% in the
week ending Oct. 16, down from 4.12% the previous week and marking the
first time the average fell below 4.00% since June 2013.
· Fifteen-year FRMs' average interest fell from 3.30% to 3.18%.
· For 1-year Treasury-indexed adjustable-rate mortgages, the average rate was down four percentage points to 3.28%.
· Five-year Treasury-indexed hybrid ARMs dropped below 3% to stand at an average of 2.92%.
Freddie
Mac Vice President and Chief Economist Frank Nothaft attributed the
drop in mortgage rates to investors' skepticism regarding economic
volatility in Europe.
Academy Mortgage is one of the top independent purchase lenders in the country as ranked in the
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www.academymortgage.com to find a loan, get a rate, or calculate your payment today.
CFPB issues proposals to update Integrated Disclosure Rule - The Mary Ellen Vanaken Team
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