3/7/3 ~ Mortgage Disclosure Information Act

If you imbed in your mid 3/7/3 you will remember the new MDIA rules!

3 days after application ~ An initial Truth-in-Lending (TIL) statement must be provided no later than 3 business days after receipt of the loan application.

7 business days after initial application ~ Waiting period ~ the borrower is not permitted to close until at least seven business days have passed since the TIL was placed in the mail or provided to the buyer

3 business days prior to closing ~ Waiting period ~ the borrower must receive an accurate APR on their TIL at least 3 business days prior to closing.  If it was provided before that period of time, because the loan terms were locked in earlier in the process, no new TIL is required if there is no change to the APR or the change is less than 1/8th of a percent.

The changes in the federal TIL will impact every mortgage provider.  We as agents must be aware changes at the closing table could require the borrower to reschedule the closing date if a revised TIL is needed.  We need to be proactive about monitoring these new timing requirements as it will impact a quick close and if new changes are not adhered to, closing could be delayed.

Our July closings will not be affected even if it is closing on July 30th, 2009. 

However it will affect all applications taken as of July 30, 2009.