Starting January 1, 2010, the Real estate and Mortgage industry is going to find themselves struggling to digest a new good faith estimate and HUD 1 (closing statement) system. There are three pieces of legislation involved.
1. HOEPA --Home Ownership and Equity Protection Act.
2. HERA -Housing and Economic Recovery Act.
3. SAFE--Secure and Fair Enforcement for Mortgage Licensing ActLater I will address in detail some of changes. In the meantime, here are some of the bullet points.
We as mortgage lenders cannot collect any fees other than credit report fees until the borrower has received their initial disclosures. ( We don't collect the credit report fee up front and we will of course do our best to keep this from impeding loan approval)
No borrower may close until seven business days have passed from receipt of those disclosures.
The homebuyer must receive a copy of the appraisal at least three business days prior to closing. (this can be waived)
The homebuyer must receive a revised Truth in Lending disclosure at least three business days before closing.
An increase of more than .125% in the APR can delay the closing. Unlocked rate, change in loan amount, product change, rate re-lock, change in closing date or changes to fees, inclusive of settlement agent fees are items effecting the APR.
Consumers will have easy access to loan originator's history .
This is not all. So you can see that with all these new things to worry about, it is more important than ever to go to reputable lenders like George's team at MIG so that closings are not delayed.
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