This week in Real Estate 6-19-2015 - Happy Father's Day

File under boring but important

August 1, 2015 new lending rules called the “Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure,” TRID for short were supposed to take effect. During the busiest time of the year for real estate transactions, the consumer financial protection bureau (CFPB) wanted to make the loan process more complicated and longer. Thankfully the CFPB has delayed the implementation to the TRID rules since banks are unsure on how to exactly comply with the several new clauses. But it is only put off until October 1, 2015.

In short the government is requiring more time for consumers to review all the documents sent before the lenders can issue loan documents or fund loans. The addition to regulations will add about 6 business days in a standard purchase.

So for buyers and sellers, a financed offer that normally has a 30 day escrow, we will likely have to begin to get used to 40 day escrows.

If you would like help falling asleep, you can see the complete rule and the Official Interpretations are available at:

http://www.consumerfinance.gov/regulations/integrated-mortgage-disclosures-under-the-real-estate-settlement-procedures-act-regulation-x-and-the-truth-in-lending-act-regulation-z/

First, the Good Faith Estimate (GFE) and the initial Truth-in-Lending disclosure (initial TIL) have been combined into a new form, the Loan Estimate. Similar to those forms, the new Loan Estimate form is designed to provide disclosures that will be helpful to consumers in understanding the key features, costs, and risks of the mortgage loan for which they are applying, and must be provided to consumers no later than the third business day after they submit a loan application. Second, the HUD-1 and final Truth-in-Lending disclosure (final TIL and, together with the initial TIL, the Truth-in-Lending forms) have been combined into another new form, the Closing Disclosure, which is designed to provide disclosures that will be helpful to consumers in understanding all of the costs of the transaction.

-Kris

Home Tip of the week

This tip is VERY self-serving.

On Father’s Day, I can tell you that ALL I want is to have a great time with my family. I don’t wear ties anymore. I really don’t need more stuff. So I wanted to think of some great activities that everyone can do as a family. Dads love to tell stories, so let’s make some memories

#1. Go to a Baseball game. The Giants aren’t in town, but the Sacamento Rivercats (rivercats.com) are and their games are ¼ the price and 2x as fun in my opinion. You can also see the A’s (Oaklandas.com) take on the Angels.

#2. Go golfing. (Minigolf counts)

#3. Go Fishing. Whether it is on the ocean or bay or river on a boat or just looking for sun fish on the local pond, remember only keep what you eat. Here are some kid friendly spots according to a website. Mine is secret. http://redtri.com/san-francisco/bay-area-fishing-spots/

#4. Find a new hike. http://www.napahiking.com/ then have a picnic.

#5. Build something together. Whether it is a simple bird house, a LEGO creation, or a Ikea nightmare. Make it fun to work together.

To all the fathers out there, Happy Father’s Day!