(Newswire.net — November 25, 2013) Fort Collins, CO — Complex disclosures required by federal law for decades are being dispensed with in favor of easier to understand documents. According to Brandon Rearick, a senior loan consultant with Caliber Home Loans in Fort Collins, CO “This is a win for the consumer, with closing documents that are actually going to clarify the exact costs and the terms of your loan before closing.”
On Wednesday the Consumer Financial Protection Bureau issued rules to lenders building off of the initiative first launched in 2011 to make sure that the events of the housing crisis would not reoccur at a later date. The newly required forms – called Know Before You Owe – have been hailed as an improvement over the complex disclosure forms that have been the norm for over 30 years. Consumer and industry groups alike supported this move as being in the best interests of both lenders and homebuyers. “These forms will make it much easier to understand your loan and compare loan offers”, Rearick said.
Caliber Home Loans senior loan consultant Brandon Rearick is advising his customers in the Fort Collins, CO area to take advantage of this new transparency in lending practices “Whether you want to buy a new home or refinance your property, now is a good time to do it. You may be able to get better terms clearly stated in language that you can understand. If you didn’t have the best lending experience in the past, you may now have an opportunity now to get a much better offer.” The new forms will provide detailed information about monthly principal and interest payments, closing costs, and any prepayment penalties or balloon payments.
Rearick is glad to see that the new loan estimate form and closing disclosure uses large and bold type for important information, and supports the new requirement that lenders must give the new form to homebuyers three days before closing “You should have at least three days to read over and understand your terms before your loan closes. Your home may be the biggest investment of your life, and I like to do everything in my power to make sure that my customers get the best terms possible.”
Caliber Home Loans, Inc. is a full-service national mortgage lender and agency direct seller/servicer. For more information about Caliber Home Loans and Brandon Rearick you can visit his website at http://www.brandonrearick.com/.
Written by: Rob Armijo