New Financing Rules can have BIG impacts on your closing schedules - check with your mortgage person today

As mentioned in a recent "Mortgage Weekly" the Federal Government has put new Consumer protection laws in place as of August 1st. These laws will slow down the lending process and probably delay many closings. The key points require that the consumer have 3 days to look over their signed Truth-in-Lending disclosure and understand all terms and costs being presented. Lenders are prohibited from collecting any upfront fees or ordering appraisals until the 4Th day after the TIL has been signed. Additionally, any change between the initial Good Faith Estimate and the final HUD-1 closing statement that changes the APR on the TIL by more or less than .125% requires re-disclosure and another 7 day waiting period before the buyer can close. Think about this; the difference of only .125% can mandate a 7 day waiting period. That means that even a change to the closing date would change the prepaid interest on the HUD-1 and could change the APR enough to have to re-disclose. Be very careful about your contract dates, as the lending process will slow down as a result of this change. It's essential to work with a mortgage lender that understands these implications and will stay on top of any changes that may impact the TIL and APR.

NOTES: In my opinion the federal government is trying to implement guidelines so that the standard BANK FRAUDULENT activities are eliminated as well as they can blow their own horn about how they are doing something to fix and or help eliminate bank fraud. It is self serving their political agendas. Give the consumer a little something something and then take credit for the good it has done for them. Mean time the BIG BANK SHARKS are still running Washington.

Folks that does not make it right about all the fraud and lies that the banks have done.
It is another example of BIG BANK & BIG GOV trying to cover their tracks with all the lies and fraud done the last decade.