Jeff Pearl Homes AR Blog: Know Before You Owe Guide for Realtors, Lenders, Buyers, and Sellers

Know Before You Owe Guide for Realtors, Lenders, Buyers, and Sellers

By now, most agents have heard about the changes that will come into play effective October 3rd thanks to the Consumer Financial Protection Bureau's new TILA-RESPA Integrated Disclosure Rule. The rule is a result of the Dodd-Frank Wall Street Reform Act which is suppose to improve the way consumers receive information about mortgage loans and the fees associated with purchasing a home.

The new TILA-RESPA Integrated Disclosure Rule requires the use of two new disclosures, (1) the " Loan Estimate" replaces the "Good Faith Estimate" and the initial " Truth in Lending Disclosure", and the new "Closing Disclosure" which will replace the old "HUD-1" that we have been using for several years, and the final " Truth in Lending Disclosure".


 How will this affect real estate contracts and sales? (1) I think mainly it will require more explaining and educating by loan officers and agents. (2) I think more time will be need to be allowed from contract to closing. I'm guessing 45 days will become normal, especially in the beginning. As everyone becomes familiar with these new changes, I suspect some closings could happen closer to 30 days depending on how busy everyone involved in the process is.


 Looks like it's time to start signing up for classes that explain these new forms and changes.








Jeff Pearl | Lic in VA

Remax Distinctive


Homes | Land | Farms | Historic

Equal Housing




Comment balloon 23 commentsJeff Pearl • August 17 2015 04:39AM


Good morning Jeff - all the more reason to ensure that the lender I work with is as knowledgeable as you are.

Posted by Wayne and Jean Marie Zuhl, The Last Names You'll Ever Need in Real Estate (Samsel & Associates) over 5 years ago

#1- Hi Wayne and Jean, Hopefully lenders will be on top of this. thanks. ( just fixed the link)

Posted by Jeff Pearl, Full Service Full Time Realtor (RE/MAX Distinctive / LIC in VA) over 5 years ago

My office is suggesting 45-day closes until we can work through the new process and see where any kinks might be. The lenders I work with are really on top of this. It's the agent on the other side of the transaction that I'm concerned about. Very important that we know what the timeline and deadlines are from day one.

Posted by John Novak, Henderson, Las Vegas and Summerlin Real Estate (Keller Williams Realty The Marketplace) over 5 years ago

Good morning Jeff. As long as we don't over react, we will all be good. It will take good communication between Realtor, loan officer, attorney or title company, buyer and seller.

Make it a great week!

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) over 5 years ago

Great reminder Jeff to make sure all understand the changes coming.

Posted by Ginny Gorman, Homes for Sale in Southern RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) over 5 years ago

#3- Hi John, I've heard 45 days mentioned as well for being a good # of days to allow for settlement date. thanks.

#4- Hi Joe, I think you're correct. The loan officers I've talked with seem to be well prepared for the coming changes.

#5- Hi Ginny, Thanks. i think if everyone involved gets familiar with the new process, it shouldn't be too bad adjusting.

Posted by Jeff Pearl, Full Service Full Time Realtor (RE/MAX Distinctive / LIC in VA) over 5 years ago

You nailed this!  We're already telling realtors that as soon as the changes are implemented we're ready, but it's going to take more time.

Posted by Darren Copeland, Darren Copeland (Leader One Financial) over 5 years ago

I too believe a 45 day close will be the norm, but, just to be sure, I'd suggest(and cover the additional cost of) a 60 day lock.

Posted by John Ferrier, 20+ yrs as a consultative mortgage professional (Mortgage Network Solutions, LLC) over 5 years ago

I attended a class a couple of weeks ago. I also got a 64 page compliance manual.  Back to school indeed!

Posted by Kathleen Daniels, Probate & Trust Specialist, Probate Real Estate (KD Realty - 408.972.1822) over 5 years ago

#7- Hi Darren, Thanks!

#8- Hi John, I can see allowing 60 days makes sense.

#9- Hi Kathleen, Wow, reading a 64 page compliance manual would put me to sleep. Learning never ends.

Posted by Jeff Pearl, Full Service Full Time Realtor (RE/MAX Distinctive / LIC in VA) over 5 years ago

Jeff - thank you for reminding us. Look forward to a good comparison between the old and the new documents.

Posted by Olga Simoncelli, CONSULTANT, Real Estate Services & Risk Management (Veritas Prime, LLC dba Veritas Prime Real Estate) over 5 years ago

30 day closings are gone forever I'm afraid.  It only takes one little screw up to start costing 3 day delays...

Posted by Bob Haywood, (McGraw Realtors) over 5 years ago

Hopefully everyone will not panic and cause more delays...

Posted by Evelyn Johnston, The People You Know, Like and Trust! (Friends & Neighbors Real Estate) over 5 years ago

Jeff Pearl TILA is just another prime example of a government out of control who thinks it needs to protect us from ourselves.

Posted by Sandy Padula and Norm Padula, JD, GRI, Presence, Persistence & Perseverance (HomeSmart Realty West & Lend Smart Mortgage, Llc.) over 5 years ago

Our process from contract to closing already takes 45-60 days. Let's hope the new process doesn't add even more time.

Posted by Kat Palmiotti, The House Kat (406-270-3667,, Broker, Blackstone Realty Group - brokered by eXp Realty) over 5 years ago

#11- Hi Olga, You're welcome. Hopefully the changover will go smoothly!

#12- Hi Bob, it looks that way.

#13- Hi Evelyn, True, panic will just stress people out. We just have to adjust.

#14- Hi Sandy and Norm, Yep, Dodd Frank strikes again. Seems like one step forward two steps back sometimes.

#15- Hi Kat, most buyers shouldn't rush anyway, but over 60 dasy is ridiculous in many cases.


Posted by Jeff Pearl, Full Service Full Time Realtor (RE/MAX Distinctive / LIC in VA) over 5 years ago

For what reasons can the buyer walk away within the new three-day right of rescission period after signing? The lawyers will be busy. How will the relocation companies deal with their double closings in escrow, given that three-day period? Will there be exceptions? (It's ironic that the people who created the mess have now their names on the law for cleaning it up.)

Posted by Gerhard Ade, What sets me apart, will set you apart. (RSVP Real Estate) over 5 years ago

I think it will become a problem getting the HOA information from some of these sellers.  Like anything else, after we do it for a while, it won't be a bad thing.

Posted by Larry Johnston, Broker,Friends & Neighbors Real Estate, Elkhart,IN (Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC) over 5 years ago

I have attended 3 classes so far and am getting comfortable with it all. Some of it still doesn't make since but I do see some good points too.

Posted by Debbie Reynolds, C21 Platinum Properties, The Dedicated Clarksville TN Realtor-(931)320-6730 (Platinum Properties- (931)771-9070) over 5 years ago

#17- Hi Gerhard, I doubt if the 3 day rule changes too much, but I suppose we should expect glitches and delays. I think most loan officers will be on top of this.

#18- Hi Larry, That could be, but i suppose everyone will work together to get sales to closing since that's is what everyone wants.

#19- Hi Debbie, Sounds good! I'm glad you see some positive points.

Posted by Jeff Pearl, Full Service Full Time Realtor (RE/MAX Distinctive / LIC in VA) over 5 years ago

dodd frank .., arent you tired of hearing how this bill is destroying our economy one brick at a time. the one thing we have that we cant buy is time....and now they want to take our time

Posted by Mike Rock, Granite Bay Luxury New Construction...For Less (Complete Design) over 5 years ago

Of course, Mr. Dodd managed to complete the refinance of his pem real estate just before leaving office and being subject to the legialation he inspired.

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