How The New Government Regulations Impact Your Closing Dates

On July 30, 2009 the new Housing and Economic Recovery Act (HERA) regulations will go into effect.

• They require all mortgage lenders and brokers to help prevent deceptive lending practices and protect customers by helping them become more informed.

• These new requirement could impact your closing dates.

The Four key elements you need to know :

1. If the homebuyer is financing the property, these new regulatory and investor guidelines will impact – and could even dictate the closing date
2. Upfront fees cannot be collected by the lender until the initial disclosures are received.  Fees are needed to order the credit report, appraisal and get the process underway.
3. The homebuyer must be provided with a copy of his or her appraisal a minimum of 3 days prior to closing
4. An increase of more than .125% in the APR from the initial disclosures requires the Truth in Lending to be revised and reissued to the homebuyer at least 3 business days before closing.