The Good Faith Estimate and the initial Truth in Lending form will be phased out and replaced by the Loan Estimate, intended to provide consumers with information that will help them understand costs, features and risks associated with the loan in question. HUD-1 and the second TIL will be combined into the Closing Disclosure form intended to help consumers grasp all of the costs of the loan and which lenders must deliver to them at least three days before the loan is completed in order to give them a chance to review the details.

Mani advises that lenders heed the new regulations as they are completed and do their part to make sure that the regulations function as they should.

“As responsible corporate citizens, lenders will have to embrace regulations and work within the framework to avoid the mistakes of the past,” Mani said. “The market will evolve to accommodate, so will the professionals who make this industry a career. I will caution anyone who thinks that a mere license to practice the trade is their passport to start a career in real estate. Regulations are far reaching and have financial and legal implications for the loan officer and the company he or she works for that are severe.”