Myth vs. Reality
August 1 RESPA/TILA changes
Myth:
Real estate agents should build extra days into their timeline before the desired closing date to
accommodate the new requirements.
Reality: Regardless of the form of delivery, the Closing Disclosure must be received by the borrower(s) no later than
3 days prior to closing. While there is no requirement of agents or borrowers to extend closing dates, some
industry groups are suggesting
that agents include additional
Mail 3 BUSINESS
Receive 3 BUSINESS
Close
DAYS
DAYS
days in their overall timelines
Monday
Thursday
Monday
to allow for the new process.
Bank of America’s closing cycle
Tuesday
Friday
Tuesday
times are the same as or better
Wednesday
Saturday
Wednesday
than industry peers, and we
Thursday
Monday
Thursday
expect that to remain consistent.
Friday
Tuesday
Friday
(See Bank of America’s
Saturday
Wednesday
Saturday
closing timeline on the right.)
Myth:
Delivering the Closing Disclosure electronically would reduce the number of days that would
otherwise be required if it were mailed.
Reality: Although electronic delivery is permitted, the USPS mailbox delivery timing is the default timing outlined by the
Consumer Financial Protection Bureau (CFPB). However, Bank of America will send the initial Closing Disclosure
by overnight delivery. If the situation requires, in some cases, the bank may obtain a verbal acknowledgement
from the customer of early receipt and could expedite processing. It is worth noting that electronic receipts
and overnight shipping signatures do not confirm actual receipt of the Closing Disclosure. Bank of America is
exploring electronic delivery methods for future use.
Myth:
My customer will be charged for a credit report and an appraisal when they apply for a mortgage.
Reality: Although lenders are permitted to charge for a credit report at application, Bank of America has decided not to
charge fees until after the customer has received their initial loan Estimate and provided the bank with a verbal
confirmation of their “Intent to Proceed (ITP)” in order to provide the best experience. Therefore, only when
we receive the ITP will we move forward with the loan application and request payment for the credit report
and appraisal.
Myth:
Settlement agents can continue to work with Bank of America as usual after August 1 without
making any changes.
Reality: In August, Bank of America will begin using the RealEC® Technologies Closing Insight™ platform to
communicate and share documents with settlement agents. In order to close loans with Bank of America,
settlement agents will need to register to use Closing Insight.™ Registration is free and quick, the portal design
is intuitive, and the system can be leveraged by independent agents. For more information, settlement agents
can visit www.bkfs.com/realec/Pages/default.aspx.
Myth:
Settlement agents will continue to generate and deliver Closing Disclosures after August 1.
Reality: Bank of America has decided to generate and deliver borrowers’ Closing Disclosures related to loan applications
taken on or after August 1. Because of the requirement the CFPB places on lenders to demonstrate compliance
with timing and document accuracy, many lenders will be taking on the responsibility of generating and
delivering borrowers’ Closing Disclosures. The settlement agent will still generate and deliver the seller’s
Closing Disclosure.
Myth:
As my client’s representative, I can obtain a copy of my client’s Closing Disclosure.
Reality: Currently, real estate professionals obtain documents directly from their clients, and we anticipate that practice
will continue after August 1.
Bank of America, N.A., Member FDIC. Equal Housing Lender. ©2015 Bank of America Corporation. AR6VL9VB SHEET-04-15-0194 05-2015