CFPB Material for Settlement Agents | SoftPro Blog

Education of the new rules and requirements under the Final Rule will most likely fall to the settlement agent.  Once of the most common questions that a consumer or realtor might have in the beginning will be Will the new mortgage disclosures delay my closing?  The CFPB offers the following explanation and handout that might make explaining it just a little bit easier.

Will the new mortgage disclosures delay my closing?

The answer is no for just about everybody. Here’s a factsheet to clarify some questions about the three day review period.

If there is a change to any one of three, very specific, and very important items, the lender must give you another three business days to review the updated disclosure.

The only three changes that would require a new three-day review period:

• Increasing the annual percentage rate (APR) by more than 1/8 of a percentage point for a fixed-rate loan or 1/4 of a percentage point for an adjustable-rate loan (decreasing the interest rate or fees doesn’t cause a delay)
• The addition of a prepayment penalty
• Changes in the loan product, from a fixed-rate to an adjustable-rate loan, for example

However, many things can change in the days leading up to closing that won’t require a new three-day review period, including typos on the forms, problems discovered on a walk-through, and most changes to payments made at closing, including changes that require seller credits.