Changes in the lending process

As of July 30th, 2009, the mortgage industry will have to conform with new rules. 

In 2008, amendments to the Home Ownership and Equity Protection Act (HOEPA) and the Housing and Economic Recovery Act (HERA) were passed by Congress, and the Federal REserve Board published the regulations under the Truth in Lending Act.  These regulations require all mortgage lenders and morgage brokers to help prevent deceptive lending practices and protect consumers by helping them become more informed.

Changes include:
-new timeframes for when certain disclosures are issued and fees are collected
-a minimum number of days for consumers to review loan options prior to closing
-re-disclosure fo the Truth in Lending for any increase greater than .125% in Annual Percentage Rate (APR).

These changes COULD impact loan closing dates, so it's imperative that morgage lenders, Reatlors, and title companies work together and communicate effectively.

As these changes occur, consumers can use the tips below to help ensure a timely closing:
-Get a credit check and pre-approval from a reputable lender before shopping for a home.
-Review all potential ups and downs and the timeline of the loan with the lender right away.
-Review the appraisal delivery disclosure and determine whether or not to waive the 3-business day review period prior to closing.
-Understand that the interest rate on the loan or a change in fees or other products can impact the APR which means that until the rate is locked in, an exact APR cannot be determined, and this may affect your closing date.

I'm optimistic about this, but we'll have to wait and see how this all plays out once it goes fully into effect.

Here is a link for more information: http://www.wolterskluwerfs.com/info/resparc/changes.html