New mortgage disclosure procedures
Posted Sep 10, 2009 @ 5:58 pm, Viewed by 267 Visitors, Read 283 Times.New disclosure procedures
Fall homebuyers and refinancers will be seeing new disclosure procedures. The Federal Reserve Board has issued regulations that significantly change the disclosures you get during the mortgage application process. The change to Truth in Lending Regulations (also known as Regulation Z) took effect for loan applications made after July 30.
The revisions implement the Mortgage Disclosure Improvement Act (MDIA), which was intended to ensure that consumers receive cost disclosures earlier in the mortgage process. Under the regulations, a lender must mail or give you a good faith estimate of loan costs (“early disclosures”) within three business days after receiving your mortgage application and before any fees are collected from you. The lender can collect a reasonable fee for obtaining your credit history, though.
This early disclosure is required for loans secured by your principal residence or a second home, including refinances. An early disclosure is not required for loans on investment properties. After providing the disclosure, you will have to wait seven business days before the loan can close. If there is a change in the annual percentage rate greater than 0.125 percent, the lender must give you a new disclosure statement and wait an additional three
business days before closing the loan!
Understand that APRs reflect certain settlement charges outside of just the nominal interest rate, so it is not just an interest rate change that would trigger a new disclosure.
If you have a bona fide personal financial emergency, such as a pending foreclosure, the rules permit the closing to be expedited. This new procedure is making the loan approval process a lengthier one. With the havoc the new HVCC appraisal laws are causing (thanks Gov. Cuomo!).
Lenders can’t order an appraisal until a borrower has received the early disclosure and had time to review it. Your Loan Officer will most likely need to lock your interest rate for 60 days.
© 2007, Real Estate Information Services & Capitol Assets
© 2007, Real Estate Information Services & Capitol Assets
Choice Real Estate® -- Loyal REW client
MD DC VA homes for sale | Daily mortgage rates>> FHA, VA, USDA
Rate this Post!
Share this Post
Print
Social BookmarkingThis Post Has No Comments.
REW Blogs User Stats
Currently Online Users:
0
Total Users:
2,389
Entries:
7,601
Unique Views:
6,436,593
Total Views:
6,773,958
Total Comments:
9,370
Total REW Points:
510
Choice Real Estate®
www.choicerealestate.net Read More
Contact Me
RSS Feed- This User's Stats
-
Blog Entries: 28Average Blog Rating: 0Unique Views: 18,659Total Views: 19,695Comments Posted: 47Comments Received: 30REW Points: 0
- Friends
-
Top Rated
REW Blogs RSS Feed