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[Music] [Music] hi I'm Stephen Gasque with the National Association of Realtors thank you for joining our webcast the new closing rules from the NA our studios here in Washington today we'll be talking about big changes to the forms and the process that lenders will have to go through when your clients buy a home the changes take effect soon and they come from a new set of federal rules today we'll have a national expert on the closing rules along with an NA our senior counsel right here to tell us all what to expect and if you have questions about those rules get ready because you'll be able to ask them later in the webcast we'll put instructions up on your screen but first let's begin today with a short video about those new federal rules and the changes you will see at every real estate closing in the future changes that have a lot of Realtors asking a lot of questions what happens with the new regulations caused a delay in the closing and the rate lock expires what should we be asking the settlement entity and the lenders about their preparation for dealing with the new legislation with the new regulations where the agents need to change the way they structure the contract to complex federal laws govern residential real estate sales and mortgages in America one of those statutes the Real Estate Settlement Procedures Act known as RESPA requires the disclosure to buyers and sellers of all the costs involved with a home transaction the other the Truth in Lending Act Tila lays out the information lenders must provide consumers when they shop for a mortgage those overlapping laws have long been a source of confusion for consumers and frustration for lenders so when Congress passed the dodd-frank Wall Street Reform Act in the wake of the financial crisis it directed the new Consumer Financial Protection Bureau to simplify matters and bring RESPA and Tila together the merger of the two law means the closing documents and timelines you're used to will go away gone will be the familiar Good Faith Estimate and hud-1 forms in their place the new loan estimate and closing disclosure the new forms come with strict new requirements for lenders and a higher risk of delays at closing time lenders will have to tell consumers how much a loan will cost within 3 business days of a mortgage application and mortgage providers will need to give borrowers more precise figures than they are required to provide now perhaps the biggest change for real estate professionals is that last-minute changes at the settlement table will be more difficult and in some cases impossible this is because the CFPB will require the buyer to know 3 days in advance precisely how much the transaction will cost so if you spot anything during a final walkthrough that alters a sale in any way and the closing form has changed that change will require lender approval the CFPB's goal with these changes is to make the home buying process better for consumers but everyone involved in the...