Anyone considering entering the Silicon Valley property market needs to know about the new mortgage lending rules. Known as “Know Before You Owe”, these rules were developed by the Consumer Financial Protection Bureau (CFPB). They are designed to help homebuyers understand exactly what costs are involved in their mortgages. The closing disclosure form is one of the documents required under the new rules. This informs Silicon Valley home buyers about the mortgage payment and all the other costs of buying their new home. It is laid out clearly in an easy-to-read page.
Those Purchasing a Silicon Valley Home and Agents Entitled to Financial Disclosures
However, as with all new rules, there has been some growing pains associated with implementing the new guidelines. While it has been the usual practice of lenders to inform real estate agents and their clients about all final costs, some agents are reporting that they have not been given this information. This is problematic for agents who need to advise their clients on this momentous financial decision. The CFPB recently announced that they are evaluating a proposed rule change to Know Before You Owe. The proposal is to codify what was before simply guidance. In the announcement, the CFPB reiterated that the information in the closing disclosure should be shared with both borrowers and real estate agents. This should help Silicon Valley property buyers to make better informed choices about their mortgages.