Tag: CFPB

I can substantiate Armstrong’s warning from personal experience. My mother sold her home on Monday. I went to the closing with her. There were three real estate agents in the room, along with a person from the title agency. As the poor 26 year old tattooed schmuck across the table signed his life away, the real estate agents made small talk.

They were old timers and talked about how a closing could be done in the 1970s with three forms to be signed. Today, there are dozens upon dozens of cover your ass forms that must be signed. Then they started talking about August and how it would become ten times worse. I inquired as to what they were talking about.

They said that Dodd Frank rules would go into effect on August 1 and make their lives miserable. Today, the agents can correct errors or omissions at the closing table. They are given some flexibility for human error. As of August 1, there will be dozens of new rules that will slow down the closing process dramatically. If every t is not crossed and every i dotted, the closing will have to be delayed. The threat of litigation will paralyze the housing industry.

Has adding 100 forms to sign and dozens of hoops to jump through made buying a house safer than when 3 forms were required in the 1970s? Who benefits, other than lawyers and government drones? Everything the government touches turns into a giant clusterfuck of failure.