Truth In Lending Changes

This serves as a not so gentle reminder that tomorrow, July 30th, is the start of the Mortgage Disclosure Improvement Act.  This will have a significant impact on the home buying and refinancing process.  The most noticeable change will be how much longer it will take to close a loan.  The purpose of the Act is to help prevent deceptive lending practices as well as to keep consumers informed.  Some highlights include:

Accurate Truth in Lending - It will now be imperative to correctly communicate all fees in the transaction that correspond to the TIL.  Any changes greater than 1/8% to the APR will require a redisclosure and very well could delay your closing.

There must be a 7 day waiting period (not inclusive of Sundays and Federal holidays) from the time the accurate TIL is provided, until the time the loan is funded.

No fees other than that of a credit report can be charged prior  to disclosure of the TIL to the consumer.  Appraisals will now have to wait until customers are properly informed

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