Closings are Changing: New rules and documents are coming
Closings are changing. Going away are the Good Faith Estimate and the HUD-1 and they are being replaced with new documents and new timelines lenders must abide by. Any new mortgage application will use new CFPB disclosure forms and timelines. While scheduled to be implemented August 1st, there is a current proposal to delay implementation until October 1st by the CFPB, but it must undergo public comment before becoming official.
The Closing Disclosure replaces the HUD-1. The lender must provide the Closing Disclsosure to the buyer at least 3 business days prior to a closing
The Loan Estimate replaces the Good Faith Estimate. The lender must send the Loan Estimate within three business days after receiving application from a consumer and the final Loan Estimate must be issued at least 7 business days prior to the closing