At the end of July, 2009 the Government will be IMPROVING the way consumer's receive documentation and disclosures for their mortgage loan... and in the short run, while everyone is getting use to it...it's not going to be pretty!
MDIA is the new Mortgage Disclosure Improvement Act, and here's what it will probably mean to you...
Delayed Closings.
The lender is required to disclose a new Truth In Lending to the Borrower if the TIL has changed by as much as .125%. That's not the difficult part - it must be done 3 days before you can close.
No More Last Minute Closings.
We will no longer be able to get a loan approved, and then close RIGHT away - because the "Final TIL" must be disclosed to the borrower.
Yes - there are other important items, like you can no longer close within a week of making loan application, but we don't run into that very often. the biggest change (while we are all getting use to this) will be, IMHO, Delayed Closings...
Your Title Company / Attorney Office needs to understand this PRONTO, as many times it will be the way those fees are reflected that could cause the TIL to change. After all, the loan officer gives the borrower an ESTIMATED TIL at application based upon what they THINK the fees will be... we're all going to have to communicate more, and make certain we know exactly what those fees are.
If you have questions about closing a mortgage loan in NC, please call Steve and Eleanor Thorne,Senior Loan Originators, 919-649-5058
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It's not really clear to me if this is a state of NC change or a national change. Frankly, I think it should cause a delay if the TIL if off...not that 3 days makes a difference. 3 days is not enough time to change lenders and close.