August 1, 2015 – New Forms Required!

Written By: Glenn Michaels, Op-Ed Writer

On August 1, 2015 new forms are required for all real estate finance transactions except for Home Equity Lines of Credit (HELOCS) and Home Equity Conversion Mortgages (HECMS – reverse mortgages) along with Mobile Homes not affixed to the land.

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The new forms cannot be used prior to August 1, 2015 loan applications. Loan applications received on August 1, 2015 and thereafter are subject to the new forms.

The Good Faith Estimate (GFE) and Truth in Lending Statement (TIL) used today will be replaced by a new form called “Loan Estimate”. This form must be issued to an applicant within three (3) days of application submission.

A review of the form appears easier to understand and use than the current two (2) forms. The government does not want these forms used prior to August 1, 2015.

The HUD – 1, Settlement Statement (HUD – 1), initial and final Truth in Lending Statements (TIL) has also been replaced by a new form called “Closing Disclosure”. This form must also be given within three (3) days of application and then at closing.

A review of this five (5) page form fully explains everything that a borrower is paying for and/or receiving. The law allows lenders some leeway in the charges being shown in the event there are some changes in the actual charges.

Make sure your IT people or if you use a Loan Operating System that they are ready to use the new forms by August 1, 2015. From what I can see there are no exceptions if you are a mortgage lender except for the loans mentioned above. We have about eleven (11) months to get ready for the new forms.

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As a long time mortgage loan underwriter I like the new forms for the borrowers, industry, and closing people. The forms that are being replaced were very confusing for the majority of the people completing them and receiving them.

About The Author

Glenn Michaels - As an op-ed writer, Glenn Michaels is a mortgage underwriting instructor for CampusUnderwriter ( As a BBA & FHA DE Underwriter, Glenn is a Pace University graduate who also graduated from New York University’s School of Mortgage Finance. Glenn has conducted numerous training classes and has worked in the mortgage banking industry for 38 years. 

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