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MARKET UPDATE - JANUARY 2016
NEW DISCLOSURE REGULATION SLOWS HOUSING
On October 3rd, 2015, the Consumer Financial Protection Bureau's (CFPB) new TILA-RESPA Integrated Disclosure (TRID) rule went into effect.
The impact of the new disclosure rules are just now being measured; as well as their impact on the consumer, which it was designed to protect. Per the National Association of Realtors (NAR), extended closing times created by the new rules slowed down existing home sales in November, which was down 10.5%. Existing home sales hit a 19 month low. Ellie Mae showed the average loan took 3 additional business days to close in November. The average loan took 49 days to close. While these numbers may seem relatively small, the industry is just over two months in, and the new rules have not been tested by the CFPB.
Rising costs to the consumer and slower turn times are growing. For example, Pre-TRID a homeowner would pay roughly $650 for the attorney closing costs. Now that cost is roughly $1100...for the same service.
Contact Swanson Realty Today: 910-454-4450 | 4701-2 Southport-Supply Road, Southport, NC 28461