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The Lending Issue: Experts Weigh in on Atlanta’s 2015 Mortgage Outlook

by Tom Ferry

A few Consumer Financial Protection Bureau regulations remain to be finalized. One that has been finalized is the integration of the Truth in Lending Act and the Real Estate Settlement Procedures Act. This “know before you owe” change takes effect on Aug. 1 and combines two required forms and applications into one in an effort to make the process easier and less time-consuming. It also effectively ends same-day approvals and closings by requiring a three-day review period for the HUD-1 form, with review periods to follow any changes that are made during the process.

The Good Faith Estimate and the initial Truth in Lending form will be phased out and replaced by the Loan Estimate, intended to provide consumers with information that will help them understand costs, features and risks associated with the loan in question. HUD-1 and the second TIL will be combined into the Closing Disclosure form intended to help consumers grasp all of the costs of the loan and which lenders must deliver to them at least three days before the loan is completed in order to give them a chance to review the details.

Thus far, the lower interest rates have helped home values, both nationally and regionally, according to Walther. Homeowners as well as homebuyers are seeing some benefits, though those positive effects may seem to be at odds with each other.

“House prices in the US have risen on average about 5.6 percent from a year ago, according to NAR, and over 6.5 percent specifically in the south during the same period,” Walther said. “Home sales have also risen over 3 percent during the same period according to NAR. So values and sales have increased as a result of lower interest rates.”

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