Pricing exceptions are widespread in mortgage — and so are the regulatory risks

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Are you planning to buy or sell a home in August?

TILA/RESPA mortgage regulations likely to impact time to close

While the industry is bracing for the impact of the Consumer Financial Protection Bureau’s new TILA/RESPA rules coming Aug. 1, future buyers and sellers might want to reconsider when they choose to sell their home, choosing to push the process up or back several months. 

Stonegate Mortgage Corporation Founder and CEO Jim Cutillo explained in an interview that the rules will be very disruptive when they are implemented in August 2015.

Cutillo said that the industry has concerns. Not as a regulatory concern, but instead from a systems perspective and what it means to the consumer, the lender and everyone involved.

And the title industry will likely feel the biggest impact. “On a go-forward basis, you could see fundamental changes on how lenders engage title companies,” he noted.

But at the end of the day, it will be the consumers who may feel the biggest impact as it will take longer for to get a home loan closed, Cutillo explained. 

Stonegate is working to make sure borrowers are aware of the coming changes, Cutillo said, including making educational videos.

Right now, Stonegate closes in 23 days or less in some cases, but with the changes, the vast majority of loans will be extended by at least 15 days, even with certain precautions to mitigate delays by doing things electronically. 

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