Thanks to the Dodd/Frank act we have another round of changes coming to the real estate industry nationally and most agents aren’t ready for it. In fact many lenders aren’t even ready and most likely we will see a lot leave the business or merge with others based on the new workload and accountability.
Here’s a few of the changes:
Closing will now take 45 days or more to complete because of the additional deadlines, timeframes and documentation required.
Out of state lenders MUST follow national as well as new state & local requirements. The timeline for required dates during the escrow process can cause a closing to be delayed. It states in the new Arizona contract “it is your (buyer) responsibility to make sure you and your lender follow the timeline requirements. Otherwise, the seller may cancel the contract and you may be liable for damages”.
The new Arizona contract states that “An AAR Pre-Qualification Form IS attached. Meaning that out of state lenders MUST complete the form. Do they have one? In the past a lot of out of state lenders have refused to complete this form but now it’s mandatory which is why it’s more important than ever to work with a local lender.
The old closing statement is gone now and in it’s place is a new “Closing Document”. The law states this can only be given to the real estate agent by the borrower. This means you’re pretty much on your own with the lender and the law has cut us out of it.
The Closing Document must be sent to the Escrow Agent at least 10-14 days prior to the closing date. This is a change from 3 days prior so you can see where some of the closing time comes from.
The new law states if there’s any changes to the Closing Document after delivery to the borrower it triggers a 3 day waiting period. One small change on this document will cause a delay. Remember when I said you “may be liable for damages”?
All this goes into effect on October 3, 2015 and after talking to escrow & mortgage companies even they are scrabbling to be ready. In fact after inquiring about the buyer may be liable statement I was told we have a new contract coming out on January 1, 2106 to clear that up.
Welcome to the government’s help!!! Confused? Want someone that works hard at understanding all aspects of the real estate industry? Contact any of our agents and I know you’ll find them knowledgable and helpful.