We all know there have been major changes in the mortgage industry in order to provide homebuyers better information when it comes to financing a home. New regulations and investor requirements are taking effect-especially those that impact timelines.
Effective July 30, 2009 the Housing and Economic Recovery Act (HERA) amends the Truth in Lending Act (TIL), implemented through Regulation Z. It has a number of provisions including the Mortgage Disclosure Improvement Act, which changes the TIL requirements surrounding early and final disclosures to home buyers and addresses the timing of when fees can be charged by a lender.
An increase of more than .125% in the Annual Percentage Rate (APR) from the initial TIL statement requires TIL disclosure to be revised and reissued to the homebuyer. The buyer MUST receive a revised TIL disclosure at least 3 BUSINESS DAYS before closing, providing the homebuyer with the time required to determine if they are comfortable with their loan choice.
The new rules could automatically push closing dates back 7 DAYS- so please be cautious in planning and scheduling.
If you would like to know more, give me a call!
***All the information listed here was provided by Brian Morris of Wells Fargo Home Mortgage! Thanks B!****