The new Consumer Financial Protection Bureau (CFPB) has been created by the government to protect mortgage consumers.
The jury is still out as to whether this new agency will be a blessing or a curse to homebuyers. Regardless, it will certainly mean more time and paperwork when you are financing the purchase of a home.
If you plan to purchase a home in the next few months, please consider these tips as the new laws take effect.
- From contract to finish is currently about 30-40 days in Dallas. Expect it to now take 45-60 days.
- Since this is a drastic change in mortgage lending laws, be prepared for initial confusion. Remember, this is a new government agency.
- If you're selling, after October 1, 2015 try to include a contingency plan for delays or have the contract written to allow you a few days to move after the purchase to give you cushion if the closing gets delayed.
- The 'closing' (when money and possession change hands) will now be called the 'consummation'. Yeah, we're snickering too.