September 2016 - Women in Housing

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TH E M R EP O RT | 57 O R I G I NAT I O N S E R V I C I N G A NA LY T I C S S E C O N DA R Y M A R K E T ANALYTICS THE LATEST ANALYTICS AROUND THE U.S. The Cost to Close Average closing costs by state H ow much will a homebuyer pay these days to close a mort- gage loan on a home? A study by shows just how much, depending on the state in which the buyer purchases the home. Estimated amounts paid by homebuyers for closing costs, which include fees charged by lenders, as well as third-party fees for services such as apprais - als, are more accurate than ever because of the CFPB's TRID rule enacted last October, ac- cording to "Thanks to the new and improved mortgage disclosures that the CFPB introduced last October, closing cost estimates have become more accurate, be - cause they mandate that lenders include all costs ahead of time," said Holden Lewis, Bankrate. com's senior mortgage analyst. "This is great for consumers who can now comparison shop with more confidence." The average closing costs for the study were based on good faith estimates for a $200,000 mortgage loan to buy a single- family home with a 20 percent down payment. Hawaii $2,655 New York $2,560 North Carolina $2,409 Delaware $2,358 South Carolina $2,322 Connecticut $2,313 Georgia $2,303 Massachusetts $2,273 Alaska $2,257 California $2,257 Washington $2,234 New Mexico $2,231 Maryland $2,229 District of Columbia $2,213 Alabama $2,189 Maine $2,185 Florida $2,180 Vermont $2,178 Mississippi $2,175 Texas $2,175 West Virginia $2,171 New Jersey $2,168 Louisiana $2,164 Oregon $2,156 Virginia $2,136 U.S. Average $2,128 Idaho $2,108 North Dakota $2,108 Iowa $2,107 Illinois $2,079 Rhode Island $2,076 Arizona $2,071 Tennessee $2,068 New Hampshire $2,059 Indiana $2,057 Montana $2,042 Ohio $2,039 Michigan $2,038 Minnesota $2,030 Nevada $1,994 Colorado $1,990 Wyoming $1,989 Kansas $1,972 Nebraska $1,969 Utah $1,967 Arkansas $1,963 Missouri $1,926 Oklahoma $1,911 South Dakota $1,904 Kentucky $1,874 Wisconsin $1,863 Pennsylvania $1,837 Commenting Period on TRID Commences Public's chance to comment on CFPB's proposed changes to mortgage disclosure rule runs through October 18 T he proposed updates to the CFPB's TILA-RE- SPA Integrated Disclo- sure (TRID) rule, also known as the Know Before You Owe mortgage rule, were pub- lished in the Federal Register, thus launching the 64-day comment period for public comments on the proposal. The comment period on the CFPB's proposal runs through October 18, 2016. According to the CFPB, interested parties can submit comments via any of the following ways: • By email: FederalRegisterComments@cfpb. gov. Include Docket No. CFPB- 2016-0038 or RIN 3170-AA61 in the subject line of the email. • Electronically: http://www.regu- Follow the instruc- tions for submitting comments. • By mail: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G Street NW, Washington, D.C. 20552. • By hand delivery/couri- er: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1275 First Street NE, Washington, D.C. 20002. The TRID rule went into effect on October 3, 2015, and has been a source of much consternation within the industry among lend- ers and originators due to the elevated risk environment it pres- ents—namely, the cost of updating systems to be fully compliant. In late April, CFPB Director Richard Cordray wrote a letter to financial industry trades and their members recognizing the "operational challenges" the in- dustry is experiencing as a result TRID implementation and said that the bureau was considering making some "adjustments" in the regulation text to provide greater certainty and clarity. The bureau announced the proposed adjustments in late July 2016; among the proposed changes were tolerances for the total of payments, a clarification that recording fees and transfer taxes may be charged in those transac- tions without losing eligibility for the exemption in order to promote housing assistance lend- ing, expanding TRID's coverage to include all cooperative units, and additional commentary to clarify how a lender may provide separate disclosure forms to the consumer and the seller. The CFPB noted that when it published its 2012 proposal to integrate the TILA and RESPA disclosures, which were built from extensive early outreach and research, the bureau received more than 2,800 comments. Source: STATE AVERAGE CLOSING COST

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