There have been new changes to the federal Truth in Lending Act and RESPA which can slow the process of closing. The new HUD-1 form adds a few more hours of document preparation, because underwriters and escrow agents are not familiar with them.
A lot of people didn’t update their software programs or start training soon enough and this could cost a buyer more money. The fear of making a mistake on the Good Faith Estimate form are making lenders ask for closing-cost information more than once and in several formats.
Lending rules have also made it harder to close on time if things change during the escrow. If there is an amendment to the Truth in Lending Act it will require a three-day disclosure period if a borrower decides to change the loan amount or anything else that can change the interest rate. Any change of more than 0.125 in the APR can trigger another disclosure for the buyer to sign. Agents/Lenders need to educate their buyers on how long a transaction could take if changes are made during the escrow period.