New rules for closings coming August 1, 2015

Effective  August 1, 2015, HUD Statements will no longer be utilizied at closings. Two new forms that will now be used are The Loan Estimate and Closing Disclosure. The Loan Estimate will replace the initial Truth in Lending Disclosure and the Good Faith Estimate. The Closing Disclosure will replace the final Truth in Lending Disclosure and the HUD-1. These forms must be given at least three business days prior to closings, not including closing date. If closing date is on a Friday, the forms must be given on a Tuesday. These changes were implemented in order to give consumers a clear understanding of mortgages and mortgages disclosures, makes it easier to make loan comparisons, and omit any surprises at the closing table.

A significant change is that the Closing Disclosure separates the closing services and itemizes each charge alphabetically, for a clearer understanding. Each Closing Disclosure will be different as each lender charges different fees.

Changes aren't applicable to home equity lines of credit, reverse mortgages, mortgages secured by mobile homes or dwellings to unattached property, or mortgages by lenders that make fewer than five loans per year.