What is CFPB and How Does this Affect My Home Loan?

The CFPB Proposed Rule Changes are here and the way we do business is going to be different…we think anyway. What is the CFPB anyway? CFPB stands for “Consumer Financial Protection Bureau.” As you know the market collapsed and world as we know it went upside down for a while. We are now right side up but the legislation aftermath that followed has not slowed down. Hence…the CFPB Proposed Rule Changes was born. The CFPB was born in July of 2011 and it overseas “ALL” consumer financial products. This means it supervises banks and non-banks and integrates disclosures under the “Dodd-Frank Act” which started in 2010 after the collapse. The CFPB covers Federal and State Regulatory issues. Is the HUD-1, GFE, and TIL Going Away? Good question, and the answer is YES. This sounds scary and it kind of is because we have all been doing business a certain way for a long time and now some major changes are headed our way. Here are some NEW terms for you to familiarize yourself with: 1. The GFE (Good Faith Estimate) is now going to be the Loan Estimate. 2. The HUD-1 is now going to be the Closing Disclosure Form or CDF 3. 3 Day Rule in affect where the borrower needs to see Final figures. If off by more than $100 a re-disclosure has to take place. 4. Either the Lender or Title Company was deliver the Closing Disclosure Form 5. Limits to Closing Cost increases 6. APR will now change to include more fees normal Title and Escrow Charges 7. Implementation could take 12-18 months. All in all you need not worry. As long as you make sure you adjoin yourself with a lender who has been trained properly in the new changes, you can sit back, relax and let them work their magic to help you obtain your home loan, or home refinance. Ultimately if you find a company who has already put these changes into play ahead of time, you will have no problem reaching your ultimate goal. Texas Premier Mortgage has teamed up with some of the best in the industry to brain storm and make a plan to implement these changes so that is does not affect our customers…it just helps them to achieve a higher level of satisfaction once they sign those closing papers! If you need any assistance at all, contact Steve Head, President and Owner of Texas Premier Mortgage to assist you with your next home purchase. Find us online at www.txpremiermortgage.com or call 281-627-4222 today!