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How to Adapt to
the New Disclosure Rules
Change is inevitable, except from vending machines! I want to share with
you some of the rules and regulations that mortgage lenders must comply
with--and how working together, we can insure smoother transactions &
closings! There were 2 new laws that affect all of us:
The Mortgage
Disclosure Improvement Act
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Uniformity
– Lenders must all use the same Good Faith Estimate
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Business
Days – Defined as Monday thru Saturday, EXCEPT holidays
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Re-disclosure – If APR rates changes an 1/8% over original
disclosure
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Waiting
Periods – Time to review disclosures and HUD 1
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Comparison
Shopping – GFE encourages rate comparisons from 3 lenders
RESPA & New
Good Faith Estimate
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New Good
Faith Estimate, 3-page Form ALL lenders must use
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New HUD
Settlement Costs Booklet
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GFE needs
to match HUD1 at closing (some tolerances apply)
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No
“waiting time” Waivers Allowed
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No
Last-minute negotiations between buyers & sellers
What to Advise your Clients to Insure Smoother Transactions
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Lock
interest rate 10 days before closing
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Encourage
buyers to SHOP for their mortgage BEFORE buying a home.
(Switching lenders starts the disclosure (and waiting periods)
all over again)
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Review
“good faith WORKSHEET” (not the uniform GFE) with your clients
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Read the
HUD Settlement Cost Booklet (first pages describe the role of
real estate agents)
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Add clause
to purchase agreement with “automatic extension” due to RESPA/GFE
delays
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Make sure
clients get a REAL pre-approval
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Ask Title
Company to Provide “mock” HUD1 at least 10 days before closing
"The information provided has been based on rules
and regulations issued by Federal Agencies and interpreted for you
by MortgageCurrentcy.com. Interpretations are not guaranteed but we
attempt to make them both easy to understand and help you sell more
real estate. Check with your local and state authorities to ensure
that you meet all requirements and disclosures."
Copyright © 2010 Reprinted with permission
MortgageCurrentcy.com
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