What does the Dodd Frank mortgage regulation mean for buyers and sellers?
Signed into effect in July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act is the result of the Great Recession and an effort by lawmakers to protect consumers by regulating banks and other financial institutions. What does the Dodd Frank mortgage regulation mean for buyers and sellers? Simply stated, it means longer escrow periods.
If you’re planning on buying or selling a home after October 1, 2015, your escrow may be 45 instead of 30 days due to regulations that go into effect for real estate transactions that involve a home loan. If you’re planning to buy or sell a home, we recommend allowing for the longer timeline especially if:
- You’re ending a lease.
- You have kids starting school.
- You have a trip or special event planned.
We can move a sale or purchase along as fast as we can but when it comes to escrow, we can’t make promises that it will be completed in 30 days due to the Dodd Frank mortgage regulation.
Have patience in your real estate transaction involving a loan or use cash. Your escrow won’t be impacted if you’re buying a home with cash. Questions about these changes? Call Newman Realty at 480-993-8653.