Ted C. Jones, chief economist and senior vice president for Stewart Title Guaranty Co. in Houston, says financing the buying and selling of houses will be much more difficult when the mortgage disclosure rules go in to effect Oct. 1, as newsok tells MHProNews. “We’re going to continue to have more renters than owners than normal, and part of that, almost all of that, is a function of our government — Dodd-Frank and the CFPB,” he said at the Oklahoma Building Summit & Expo at Cox Convention Center.

He says reform of the mortgage disclosure rules were supposed to be implemented Aug. 1 but have been delayed until Oct. 1, but that will not change the delays written into the new rules. Noting it will not be a smooth transition at all, Jones said it will bring some transactions to an abrupt stop: Some critics say it could could closings 10 to 15 days.

“If you go to a closing and there is a material change in that dollar amount, you have to delay the closing another three days,” he said. “Just prepare yourself for some extra interest carried (forward on the seller’s or builder’s own loan). “And just pity the poor homeowner that thinks they’re moving into a house that day and that moving truck’s there, because they may not get the keys that day.”

The TRID form–TILA-RESPA Integrated Disclosure—has no line numbers, making it difficult to understand for reconciling changes. Any transaction that involves a mortgage will use the new disclosure forms. He noted the last time HUD made a change to the main loan disclosure document–the HUD-1 settlement statement in 2010—homebuyers, real estate agents and title people came to closings before lenders had funded the transactions.

“CFPB is a four-letter word as far as I’m concerned,” Jones said. “It is a dog that’s out of control.” ##

(Photo credit: newsok–Ted C. Jones)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.