DELAY IN NEW RULE!!

The Consumer Financial Protection Bureau has decided to delay the implementation of the new rules and changes I described in my previous blog. They will now go into effect on October 1st­of this year instead of August 1st. This is a very important change because in a typical year, real estate sales begin to slow down somewhat by then. This will mean less confusion while the mortgage companies and title insurance vendors adjust to the change through the even slower winter selling season. Fewer consumers will be impacted in the process. Finally someone has gained some degree of common sense about this huge change in the way mortgages are delivered. All of the warnings I presented still exist, only they will occur 2 months later. Another important point, in the way I understand it, is that these rules will only effect mortgages which are applied for on or after October 1, 2015. So mortgages which have been officially applied for, with all of the consumer papers completed, before that date will not be effected. See my previous blog for the nature of these changes and also an article I posted, today, on my web site Mnhomesbydave.com under the Real Estate News Tab to see a memo from Charity Malmberg, CEO of Trademark Title, a leader in the effort to educate the agents and the public about the changes. It includes a Statement from Richard Cordray, Director of the CFPB. Please feel free to contact me with any questions.

David Feerhusen

David Feerhusen

Broker/Realtor, CDPE, GRI, CRB
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