What do TILA changes mean for lenders, title agents?
Changes to the Truth in Lending Act (TILA) now require lenders to provide consumers "early disclosure" of good faith estimates of mortgage loan costs and a minimum seven-day waiting period between disclosure and closing.
This means it's all the more important for lenders to obtain an accurate settlement fee quote from their title agent as early as possible. The Federal Reserve has highlighted the major changes in the truth in lending early disclosure requirements this chart:
To avoid delays in the closing process, lenders must be precise. The new requirements also call for an additional three business days of wait-time before consummating a loan transaction should the APR reflected in the initial disclosure vary by more than an eighth of one percent (.125%).
A guaranteed quote, such as the one offered by Federal Title & Escrow Company, will ensure there are no surprises – or closing delays – at the end of a real estate transaction.