Thanks to the hard work and advocacy of North Carolina Realtors®, every member of North Carolina’s congressional delegation has signed a letter to the Consumer Financial Protection Bureau (CFPB), asking for an enforcement grace period for the RESPA/TILA closing documentation changes set to take effect on August 1 of this year.
The changes will replace the HUD-1 settlement statement, Good Faith Estimate forms, and Truth in Lending Act disclosure with a new Closing Disclosure and a new, single Loan Estimate. There will be changes to the closing process as well, including a new rule requiring everything to be in place three days prior to closing.
Charlotte Regional REALTOR® Association (CRRA) members joined Realtors® from across the state on May 13th to walk the halls of Capitol Hill and ask members of Congress to sign the letter asking CFPB for a grace period, which would:
- Allow consumers, lenders, attorneys and real estate professionals practical experience in transitioning to the new documents;
- Prevent significant bumps in the road that could cost buyers time and money,
- Provide for a smoother overall implementation; and,
- Allow Realtors® time to offer critical feedback to the Bureau so that improvements can be made if necessary.
Realtors® explained that the National Association of Realtors® (NAR) was not opposed to the closing changes. However, the industry has concerns that risk-averse lenders may unnecessarily delay closings in response to new regulations and rigid enforcement. While North Carolina Realtors® lobbied individual members of Congress, NAR President Chris Polychron testified on Capitol Hill on the issue.
REBIC and CRRA are particularly grateful for the support of our Charlotte-area House members, Alma Adams, Richard Hudson and Robert Pittenger!
Source: North Carolina Association of REALTORS®