More Lending Changes

Posted Jul 24, 2009 @ 1:24 pm, Viewed by 166 Visitors, Read 166 Times.

There are even more changes coming soon to the mortgage industry.  Begining July 30th, there will be stricter regulations on how accurate a good faith estimate must be.  Now, your final APR must be within 1/8 of a percent as the proposed APR when your loan is orginated.  If anything changes to throw off the APR from orgination to closing, you must wait 3 days for the changes to be made and fixed. 

What does that mean to borrowers?  If you get your HUD to preview a day before settlement, and something changed, you now have to wait at least 3 days for the changes to be fixed, potentially pushing back your settement date.  Also, as part of the new regulations, money can not be collected from the borrower for an appraisal until 6 days after your loan is orginated.  Now, the already slow appraisal process (because of the H.V.C.C) just got a week longer.

What can you do as the borrower?  On a purchase loan, expect 45-60 days for underwriting.  This would give plenty of time for an underwriter to approve your loan, and if any changes have to be made as a result of the new guidelines, it leaves plenty of time.  The other thing borrowers must do is be patient.  Understand that things take longer now, and be prepared.  Just make sure your broker has locked in your rate for the proper amount of time.  Ask for a copy of your lock, and if the loan officer won't send one, be cautious moving forward with him.

So what could change from your estimate to the final HUD?  Any APR fee that changes could throw it off.  That could mean anything from your rate changing to any lender or broker fee's changing, to the day you close chaging (the interest from the day you close to the end of the month is an APR fee).  

Click here for a complete list of APR fee's.

 

Need a loan officer in MD, VA or DC?

 

 

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joshp975

joshp975 I've lived in the DC metro area my entire life; growing up in Montgomery County Maryland and attending the University of Maryland.  I now live in Arlington, Virginia.  Living all around the DC area has given me a great understanding of the real estate market.  After graduating from the University of Maryland, I worked as a loan officer in Gaithersburg for three years.  I then opened my own mortgage brokerage company, which I ran and operated successfully for several years before agreeing to a buyout by my partner.  Now, I have found a home at Choice Finance where I am able to grow professionally and better serve my clients. My experience has helped me refine my business techniques and find my niche in the FHA Jumbo Market.  It has also enabled many clients to take advantage of this program, which in turn lowered intrest rates and saved them money.  My combination of experience and know-how has lead me to become a great resource for my clients and enabled them to achieve their dream of homeownership. Read More

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