If you thought the HVCC was a pain, wait until the new H.E.R.A. Truth In Lending rules take effect July 30th.  Under the new rules the final TIL's APR cannot vary by more than .125% UP or DOWN from the initial disclosure.  If it does, the TIL must be re-disclosed to the borrower and closing cannot take place until 3 business days AFTER the borrower RECEIVES the disclosure. 

Since some APR fees (like per diem interest) are not determined until the closing date is set, this is sure to create problems.  Typically final fees are collected a day or two before closing and the closing package is prepared and sent off to the title company or closing attorney.

Under the new rules, if the APR was off, a new TIL would have to be prepared in order to re-disclose the APR and closing would have to be postponed to satisfy the waiting period.

This is all in the name of consumer protection.  Explain that to your home seller when you have to cancel the closing.

 

 
Post is included in group: REALTOR LIFE

4 Comments on The End Of Quick Closings!

JUL
23
2009
Attended Rain Camp

There is certainly a trend in all of this protective crap to miss the big picture isn't there?
9:23am • #1
379,743 Points 2 Featured Posts Outside Blog

This was never a problem. Now they make it one. This will cripple the industry. Thanks, Hussien.
9:27am • #2
510,388 Points 8 Featured Posts Outside Blog

Jeff, I posted on this last week, I dont think people realize how important this is and how costs outside of a lender can and will delay closings.
10:01am • #3
316,022 Points 2 Featured Posts

Jeff - Really, those guys in Washington are so brilliant.  We should vote them out of office in the next election.
10:01am • #4


What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 
Jeff_picture

Jeff Lutcza

Mortgage Consultant - 147581

Wayne, NJ

More about me…

Advisors Mortgage Group

Address: 385 RT 23 South, Suite 201, Franklin, NJ, 07416

Office Phone: (973) 823-1300

Cell Phone: (201) 477-0359

Email Me



Links

Archives

RSS 2.0 Feed for this blog

Find NJ real estate agents and Wayne real estate on ActiveRain.