Are you in the market for a new home? Thinking of obtaining a mortage on that purchase? It is imperitive to work with a lender that can accomplish your goals while providing the best and honest service with competitive rates. Call me and we can get the process started! Some new changes in Lending provided below.
Recent changes in the Truth in Lending laws as of 7/30/09
CLARIFICATION OF NEW RESPA ACT
Changes to the Truth in Lending Act: What You Need to Know!
Regulation Z of The Truth in Lending Act (TILA) has undergone important changes that you need to know about in order to set expectations when looking for a loan. These changes take effect for all new applications taken on July 30, 2009 and after, apply to ALL types of mortgage loans (except investor loans and HELOC's) and could impact the overall time line of the mortgage process.
Regulation Z of The Truth in Lending Act (TILA) has undergone important changes that you need to know about in order to set expectations when looking for a loan. These changes take effect for all new applications taken on July 30, 2009 and after, apply to ALL types of mortgage loans (except investor loans and HELOC's) and could impact the overall time line of the mortgage process.
Here are four key parts you need to know:
Initial Disclosures: Under the new rules, initial disclosures must be provided to the borrower for all loans within three (3) business days of when an application is taken.
Initial disclosures include: the Good Faith Estimate (GFE), Truth in Lending Statement (TIL).
Collection of Up-front Fees: The new regulations prohibit lenders from ordering and collecting many up-front fees (ie: appraisal) prior to the new waiting period.
Collection of Up-front Fees: The new regulations prohibit lenders from ordering and collecting many up-front fees (ie: appraisal) prior to the new waiting period.
If the loan application is face-to-face, there is no waiting period.
Otherwise lenders have a 3 day waiting period before fee services can be ordered.
TBD properties: Are not considered actual applications per RESPA - once a property is identified and application is made - the waiting period would start from that day. So, if we did a pre-qual for someone today and a week later the property is identified, the disclosures would need to be signed and/or mailed on that day, and the waiting period begins.
Re-disclosures: If there are changes to a borrower's Annual Percentage Rate (APR) that INCREASES more than .125%, the lender must re-disclose to the borrower, and the 3 day waiting period starts over again.
Timing of Loan Closings: Business days are considered Monday-Saturday excluding legal public holidays. Closings cannot be scheduled until at least seven (7) business days after the initial disclosures are received by the borrower. If re-disclosures are needed because of changes to the loan program, terms or APR, the loan closing cannot be scheduled until after the re-disclosures are received by the borrower.
Please contact me for all of your real estate needs @ (702) 521-3939
Kim Duclos - Coldwell Banker
Wardley
Wardley
