The HUD-1 statement change. It's VERY simple; do this ONE thing!

Is it just human nature, to make things far more confusing then they need to be? Does it make us feel brilliant, to take the long way around a problem?

Keep It Simple Stupid (KISS)

Recently, my son brought home some math homework, and proceeded to work the problem in front of me. Huh? What?!!! "What the heck are you doing"...I inquired. He shared with me, in his ooh-so-I-know-everything voice..."my homework, duh" (eye roll).

Did you know there is a NEW way to do math? Do you also know that Albert Einstein on Ginseng couldn't figure it out?!! Apparently, there is a fantastically update version of arithmetic; and well...it's stupid. The way we did it before was just fine. Some things need to be left alone; and, others could use a little change.

Thank you....The Consumer Financial Protection Bureau. No really, thank you...for the change.

"I just don't get it"!!!

I've been a Realtor a couple decades, now; and I still don't know how to truly read a HUD-1 Statement. For most of us, client and professional, alike; getting close to "the close" is the best part of buying or selling a home. Yet, without fail, and, unbeknownst to my clients; I panic when the call from the title company comes. "Hey, we are sending over the HUD-1!". Elation to anxiety, all in one fell swoop. Granted, it is not my sole responsibility, to make sure those numbers are exact; but, man that pressure is strong. I'm a bit of perfectionist, when it comes to keeping my word, therefore, upon my phone alert, that IT is on it's way...I say a pretty solid prayer; and grapple with the thought.."boy, I hope those numbers line up".

But, guess what happened? CFPB decided to simplify our lives, by removing HUD-1 Settlement Statements and Good Faith Estimate Forms! Hallelujah! (repeat, repeat and repeat)! Someone, in that bureau decided, straightforward documents (for consumer and Realtors, both) was an ingenious idea. Whew.

Albert Einstein steps in (and CFPB)

Innovation 101 strikes...and, we now have 2 new forms, written using the alphabet, versus morse code. Moving forward, I can drop my angst meds; and, with sincere excitement hand my clients the keys to their new home!

In place of, the two baffling and archaic documents, we now have...

1.) The Loan Estimate
2.) The Closing Disclosures

The will look something like this...

Education & The 3 Day Rule

Whoa! Far less painless to comprehend. For those of you, that have never had the pleasure of seeing one of these statements; lucky you! For those of us, who aren't mathematically savvy..."bye-bye Pumpkin".

Drawback; but, only if you've been living under a rock. All this change means, the client has to receive The Closing Disclosures 3 days before the closing date; just to be sure, nothing has changed from the original terms.

In reality, all the mental chaos regarding this modification, is pretty unnecessary. These adjustments are good! Educating yourself, and adding those additional 3 days, to any contracts that involve lending; will put you, and your clients, right where they need to be. Back to effortless calculation.

Now, if I could just get the school system back on board with this. #KISS