Now that lenders have been operating under the new federal government regulations for approving mortgages for over half a year, industry experts are starting to compare data and consumer opinions on this new system. The idea was that the new guidelines would make it easier for consumers to understand why lenders are charging them certain fees at closing. Prior to these rules going into effect, many lenders expressed concerns that they would actually cause a number of delays and make the entire lending process more difficult. So did they?
The results so far are mixed. For example, lenders agree that it is taking longer to close mortgages now than it did before. According to Ellie Mae, a loan technology company, April had an average closing time of 45 days, up from the traditional rough estimate of 30 days that most lenders used under the previous guidelines.
American Land Title Association conducted a study into consumer experiences. According to their data, more consumers are now taking the time to read their mortgage paperwork before signing. Prior to the change, only 74 percent reported they studied the documents, while 92 percent did at the time of this study.
Yet another survey looked at consumer opinion on the new guidelines. Out of the 1,000 homebuyers who had purchased homes under both sets of rules, around a third believe that the new rules make it harder to close, and almost 60 percent believe the new system takes longer.