About The Real Estate Group

The Real Estate Group (TREG) "Partners in Excellence"

The mission of The Real Estate Group, LLC is to be Hampton Roads finest provider of real estate services. Our goal is to create a company that provides absolutely the best service for our customers by fostering an environment of teamwork and a common vision. The Real Estate Group, LLC consists of an accomplished team of skilled professionals who take pride in their work and their company. We work hard to go beyond the expectations of our customers, agents, and employees.

A Peek Into the Future of Mortgage Lending

What do you get when you combine a TILA with a RESPA?  You get a KBYO.

Get ready to say goodbye to some of our favorite mortgage forms..  Goodbye GFE…  Goodbye HUD-1…  Goodbye Truth-In-Lending…

As required by the Dodd-Frank Act, the Consumer Finance Protection Bureau (CFPB) is required to combine the Truth In Lending Disclosure and the Real Estate Settlement Procedures Act (RESPA) disclosures into one document.  The CFPB has come up with a brand new form called “Know Before You Owe”.  It’s use will be required starting August of 2015.

The CFPB asked the public and industry partners for their feedback on the painful points of the mortgage process.

Some common frustrations were expressed:

  1. Not enough time to review documents
  2. Overwhelming amount of paperwork
  3. Documents were hard to understand
  4. Errors on Documents

In an attempt to resolve these issues the CFPB is mandating the use of a new disclosure called “Know Before You Owe”.  The form is geared towards answering all of the most common questions at application.  For example, the current Good Faith Estimate (GFE) is a three page document designed to clarifying the terms of the transaction.  However it is missing several key items.  It does NOT show the sales price, down payment amount, seller contributions, or anticipated amount needed to close.  It also does not show the borrower’s total estimated monthly payment (PITI).

The new “Know Before You Owe” disclosure will combine and GFE, Truth-In Lending, and Transaction summary, and into one document.  The KBYO will be issued shortly after loan application and then a final KBYO will be issued shortly before settlement.  The final pre-settlement KBYO will replace the existing HUD-1 settlement statement.

Once the final “Know Before You Owe” disclosure is issued they are building in a mandatory 3 business day waiting period before the transaction can close.

For more about the new Know Before You Owe check it out on the CFPB website:  http://www.consumerfinance.gov/knowbeforeyouowe/

About The Real Estate Group

The Real Estate Group (TREG) "Partners in Excellence"

The mission of The Real Estate Group, LLC is to be Hampton Roads finest provider of real estate services. Our goal is to create a company that provides absolutely the best service for our customers by fostering an environment of teamwork and a common vision. The Real Estate Group, LLC consists of an accomplished team of skilled professionals who take pride in their work and their company. We work hard to go beyond the expectations of our customers, agents, and employees.