By now, most of you have heard of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”), and the new rules adopted by the Consumer Financial Protection Bureau (the “CFPB”).  The new rules adopted by the CFPB require the use the new Closing Disclosure (the “CD”) for transactions in which the loan application is initiated on or after August 1st, 2015.  This new rule will apply to most closed-end consumer mortgage loans.

The CD will replace the familiar HUD-1 and will be required to incorporate all of the final costs and adjustments between buyer and seller.  Significantly, the new law requires that the CD be delivered to the borrower/buyer no less than three business days prior to the closing date.  It is important to note that any changes made to the CD after the three day delivery will likely result in the closing being delayed.  This requirement will change the way we all prepare for closings after August 1st, 2015.  Going forward, buyers, sellers, lenders, real estate and closing agents will need to work together to ensure the timely delivery of all information regarding property taxes, HOA or condo association fees, survey costs, inspection fees, etc., in order for the lender and/or closing agent to deliver the completed CD to the borrower/buyer in time for closing.

As always, Berlin Patten Ebling, PLLC will continue to provide updates and helpful tips as the implementation of the new rule approaches in an effort to continue to raise everyone’s awareness of the upcoming changes to the closing process.


Berlin Patten Ebling, PLLC

This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.

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