New forms of the closing/settlement statements are being used when calculating the financial accounting of the sale. When a buyer is obtaining a new loan, some of the information previously found on the HUD-1 Settlement Statement is now being found on the Closing Disclosure.
The TILA-RESPA Integrated Disclosure Rule requires the delivery of the final Closing Disclosure to the buyer at least three business days prior to the scheduled settlement/signing date, giving the buyer three days to review the loan terms, fees and charges.
Settlement agents must supply information to the lender approximately 10-14 days prior to the buyer’s settlement/signing date to meet the delivery requirement. All negotiations between the buyer and seller, together with all fees, invoices and adjustments, must be finalized well in advance of the buyer’s settlement/signing date.
It may prove to be beneficial to request permission to perform two walk-throughs, one 7-10 days in advance of the scheduled settlement/signing date and a second closer to the scheduled date.
The additional walk-through allows for the early resolution of discovered issues so that the lender will have adequate time to include adjustments on the buyer’s CD. Issues found at the last-minute could possibly delay your settlement/closing date.
Things Squeezing the Real Estate Bubble
■ Very Tight Inventory
■ Cautious New Construction Trend
■ Tight Credit Requirements
■ New Home Buyer Student Debt
■ Strength in the Job Market
Mortgage Bankers Association National Secondary Market Conference in New York City discussed the state of the current housing market.
They offered projections that were generally optimistic for the next 12 months, including their estimate of a recession occurring.
Sean Becketti, Freddie Mac Chief Economist, emphasized that while the chance of a recession increased, it would need to be driven by a specific event.
MBA Chief Economist Mike Fratantoni predicted that there is a 15% to 20% chance of a recession over the next 12 months.
Fannie Mae Chief Economist Doug Duncan was the most pessimistic, raising the possibility of a recession to a 30% chance. Duncan attributed the causes for his view being: a peak in consumer credit card usage, a downturn in automobile sales and increase in corporate debt.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.