Lenders will be required to provide these simplified documents to prospective lien holders beginning August 1st, 2015.
Knoxville, TN (PRWEB) November 23, 2013
While federal regulations are placing more restrictions on lenders such as Peoples Home Equity, home buyers can take comfort in the fact that mortgage documents will at least become simplified. The Consumer Financial Protection Bureau released a November 20th report titled “What the new simplified mortgage disclosures mean for consumers.” Peoples Home Equity views the changes in this report as streamlining the mortgage process and making the closing on documents more comforting than strenuous.
What Changes Will Take Place?
Right now individuals are being given a number of overlapping documents regarding terms and costs of a mortgage which are confusing applicants. Instead congress has instructed The Consumer Financial Protection Bureau to come up with a just two documents, one called the ‘loan estimate’, given 3 days after a the mortgage application, and the other called the ‘closing disclosure’ given 3 days prior to closing. Currently, the closing documents are being given shortly before the finalized closing, not 3 days prior to give consumers leeway in thinking about the financial decision they are about to make. Lenders will be required to provide these simplified documents to prospective lien holders beginning August 1st, 2015.
Besides the decrease in the number of documents, the language will be simpler to read and understand. In addition, the documents will clearly state how “interest rate, monthly payments, and the total closing costs will be clearly presented on the first page”, as stated by the CFPB report.
Although the changes will not take place until mid-2015, applicants, especially first-time home buyers should no longer shy away from applying for a loan because it seems like a complex process. Peoples Home Equity sees the next push of the housing market resting on the shoulders of first-time home buyers. Thus, the lender applauds the current efforts of both congress and the CFPB for making the mortgage process a little easier for consumers.
Peoples Home Equity itself strives to make the lending process as easy as possible from step A to B. Their newly designed website has a “Home Loan Quick Qualifier” field available on nearly every page. For those thinking of applying for a loan, one may calculate his or her theoretical monthly payments using Peoples Home Equity mortgage calculators. The bank offers many different loan options for as little as a 3.5% down payment.
Contact a Peoples Home Equity loan representative today to discuss, under no obligation, numerous home loan options: (855) 897-0300.