Author Topic: 45 day escrows: new normal?  (Read 1322 times)

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Offline Rice Vino

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45 day escrows: new normal?
« on: September 28, 2015, 10:14:43 AM »
New disclosure requirements add complexity to loan transactions:

http://www.ocregister.com/lansner/percent-684554-loan-year.html

OCR's Lazerson predicting it will settle down after a while but chatter I'm hearing is 30 days will still be too tight even after. Main reason is there wouldn't be any buffer for what used to be minor changes during the escrow period.

Net effect is all cash offers will be that much more desirable I think.

Offline Perspective

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Re: 45 day escrows: new normal?
« Reply #1 on: September 29, 2015, 06:18:39 AM »
You're just hearing mortgage industry folk screaming how horrible this is going to be, hoping for changes. They did this with the Ability to Repay rules effective in January 2014, and continue to do so. Yet the ATR/QM rules are the best thing to ever happen to the mortgage and CA housing industries.
« Last Edit: September 29, 2015, 06:29:13 AM by Perspective »

Offline Soylent Green Is People

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Re: 45 day escrows: new normal?
« Reply #2 on: September 29, 2015, 11:04:06 AM »
All of the regs, from HVVC (appraisal reregulation), Ability To Repay (ATR), and Qualified Mortgage rules (QM) are very helpful for the industry. The only way to push banks back to sanity is to force them to originate loans as they did in the early 1990's - sound lending days, before things went berserk.

RESPA/TILA TRID changes will be just as bumpy for purchase transaction as when the other reforms were rolled out. The difference here is that TRID requires the work of Real Estate Professionals and Escrow / Title to co-operate - both wildcards here. You can make a 45 day offer, but make sure it's "or sooner" since some players are ready for TRID and others are just going to botch things up terribly. There's even a credit union out there saying that if they don't close in 20 days, they'll pay you $800 or so. That's pretty bold as we venture into a new lending disclosure environment. "Chance favors the prepared", and I guess some are more than ready to get things done and close the business professionally. We'll soon see as 10/3/15 is not far off.

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