If you’re sitting back and relaxing because you don’t think that the new Integrated Disclosures will affect you, I want you to be sure you fully understand the scope of the Rule.
The Integrated Disclosure requirements will generally apply to all closed-end loans secured by real property (i.e. land). Thus, the scope goes beyond those loans currently covered under RESPA. There will not be exemptions for loans secured by bare land; loans secured by 25 acres or more; or temporary financing. While there has been quite a bit of talk about the new disclosures, it’s important to realize that more loans will be subject to the requirements as well.
If this catches you by surprise, there’s still time to get ready by next August. You may need to start thinking about things you don’t currently have to worry about, such as shopping for settlement services and tolerance amounts. Thus, you will want to get started sooner rather than later. Check our our October Newsletter for more on the ins and outs of the Integrated Disclosures requirements.