Change is a dirty word to most of us. By nature humans don’t like disruption to their daily activities and certainly not to their business activities. Well, if you’re a real estate buyer, seller or professional in the real estate industry who has recently closed on a property, your world has already been turned upside down. If not, get ready for a tough transition.

A couple of months ago, I mentioned that as of Aug. 1 there were going to be significant changes to federal rules and regulations for residential loan transactions that will change the closing experience if a lender is involved. These changes were enacted by the Consumer Financial Protection Bureau created by the Dodd-Frank Wall Street Reform Act of 2010. The object is to provide greater protection for consumers in residential loan transactions, but in doing so, the changes are complex, have unintended consequences and could disrupt how the closing process is conducted.

First of all, the forms previously used, specifically the familiar HUD Settlement Statement, are being replaced with the Closing Disclosure form. In addition, the Closing Disclosure form must be in its final form and provided to the consumer at least three days prior to closing. If there are changes to the form within the three day window, the clock will reset and delay the closing. In addition, the three-day rule cannot be waived by any of the parties, even if they request to do so for expediency or convenience.

Essentially, adjustments that formerly could be made at the closing table or the day before the closing can’t be done. This could include adjustments in financial disbursements because of repairs to the property, the clearing of last minute liens from utilities or association fees or even simply errors on property tax figures or interest rate. Everyone involved is warned to expect delays and to allow an extra 15 days to close on a property.

The reality of unexpected delays in a closing can be monumental; the logistics of moving alone can become a nightmare with a three-day delay. Consider your kids missing the first of day of school in a new town, rescheduling movers who are scheduled for a specific day, transportation to the new location, delaying the closing of the property you’re moving from, not to mention your interest rate lock in expiring. Even taxes can be affected if it involves the requirement of closing by a date certain to take advantage of tax breaks on the sale of a primary residence or a 1031 tax-deferred exchange.

Lenders are also being hit pretty badly with the new regulations since the new rules place responsibility for the entire transaction on the lender. Previously lenders provided the loan documents to closing agents or attorneys, who then issued the settlement statements and procured the title insurance. Now the responsibility for accuracy for all of this will be on the shoulders of the lenders, so anticipate delays as lenders dot every i and cross every t in order to be in compliance.

Private financing will also be complicated and restricted by the new rules. Owner financing or real estate transactions within a family will be required to comply under the new regulations since a mortgage originator can be anyone, not just a bank or traditional lender.

There could be very rough seas and a long period of adjustment ahead for the mortgage lending industry and everyone associated with it. However, think positively. Change can be good, you think?