New Regulations For 2015

[Ray Mulli]

Several new regulations are set to hit the mortgage and property industry in the summer of 2015. So what are they, and how will they impact real estate investors and entrepreneurs?

New Mortgage Forms

On August 1st, 2015 the mortgage industry will get two new forms. The Lending Estimate (LE) will combine and replace the old Truth in Lending and Good Faith Estimate. The HUD 1 Settlement Statement and final TIL will be replaced by the Closing Disclosure (CD). We'll have to wait and see whether these documents really simplify things for home buyers and benefit them, or just add more confusion. What is perhaps more notable about these new mortgage forms being instituted by the Consumer Financial Protection Bureau (CFPB) is the new 72 hour rule. The CD must be provided to consumers 3 full days before closing. This could throw some real estate wholesalers off

New Foreclosures and REO Sales

Ongoing roll outs of financial industry regulations are putting increased pressure on US banks to shed delinquent mortgage loans and REO properties. We've already seen a massive surge in foreclosure filings in early 2015. And that trend ought to continue through the summer as lenders expedite the foreclosure process. This will create opportunities for wholesaling among motivated homeowners, at auctions, and from banks. These spikes in deal flow are already being seen from coast to coast; from Orange County, CA to Maryland, to Florida.