Longtime mortgage lender in Cary says industry adapting to new rules

With an eye toward consumer convenience and improved clarity for borrowers, the Consumer Financial Protection Bureau introduced new lending processes this fall.

Oct. 3, 2015 marked the introduction of the new TILA/RESPA Integrated Disclosure (TRID) forms to the mortgage industry. These changes were brought about by the implementation of the Dodd-Frank Act, designed to make the process of obtaining a mortgage easier for consumers.

Longtime mortgage lender Bob Kenney of 1st Advantage Mortgage in Cary believes that the changes will prove beneficial to many borrowers.

"The primary changes pertain to some of the forms used in the lending and closing processes," said Kenney. "Anyone who has closed on a home loan knows that there is a large amount of paperwork included, which can be confusing to borrowers, especially for first time buyers."

Most prevalent among the changes are the consolidation and elimination of some lending forms. According to Kenney, the Truth in Lending (TIL) and Good Faith Estimate forms have now been combined into a Loan Estimate. Similarly, the HUD1 form has been combined with the final TIL becoming the Closing Disclosure (CD). Behind the paperwork are new requirements that call for the lender and settlement agent to work together as there is a firm deadline of having the CD in the hands of the borrower no less than 3 days before closing.

"The various costs to the borrower will be grouped into new categories that are clearly labeled," said Kenney. "In addition, some costs that used to vary as much as 10% at closing have now been moved into a zero tolerance status. This should help to better manage customer expectations."

To learn more about the new TRID forms and processes as they relate to mortgage lending, contact Bob Kenney at (630) 376-0538 or bob.kenney@1amllc.com.

About 1st Advantage Mortgage

1st Advantage Mortgage is the residential mortgage division of Draper and Kramer, one of the country's premiere full-service real estate and financial firms. While still a family-owned company, headquartered in Chicago, we help identify and structure mortgage financing programs for clients across the United States, and have been doing so since 1893. Visit www.1amllc.com to learn more about 1st Advantage Mortgage.

Robert Joseph Kenney NMLS:198253