What is a CFPB?
CFPB is Consumer Financial Protection Bureau, but what does that mean? I am glad you asked. October 3rd 2015 will change the way lending is done. CFPB's aim is to educate buyers in hopes to defend any abusive practices in Lending. Next, they plan to supervise Banks, Credit Unions, Mortgage Companies in order to enforce the Federal Consumer Financial Law. Lastly, they want to study and analyze to understand consumers, Lenders and financial markets. Their aim is to make sure all pricing is crystal clear to the consumer, any risks in the contract will be easy for the customer to find and interpret, and mostly to reveal any hidden fees the Lender may try to burry in fine print. All that sounds great, but how does it affect you and your purchase? Well, after Oct 3rd and possibly Oct. 1st buyers and sellers entering into a contract with Financing involved will need to put the closing date out at least 60 days. If you are looking to purchase a home sooner than later and with financing, you will need to get a house under contract and get Loan Application pulled before October 1st (to be safe). Even this may not save you from the delays that will be incurred with new process, but you may have a better chance. The days of having the moving truck outside the Title company for back to back closings may be over. The new AS/IS contract will have an automatic 10 day extension built into it because they foresee there may be issues that arise. We all hope things will get better once Congress rolls out CFPB, but we will have to wait and see. You can find more information about the subject at the CFPB Consumer website. My advice for now, make sure your Realtor and Lender know what CFPB means, if not, you may not be closing any time soon.