There is a change in the Truth in Lending Act that affects nearly all mortgage loans.  It does not appear that it will be overly troublesome for Real Estate Agents.  The one rule that may have some impact describes a three day waiting period if the APR changes by more than 1/8 (.125%) to allow the borrower to be notified. 

Below are three links that I thought might be helpful.  One of my coaching Clients (a Real Estate Agent) who lives in an area where closing happen with 30 days of contract acceptance is telling his Buyers and Sellers to anticipate possible delays of up to two weeks based on the new rules. 

This is a brilliant practice.  It shows your Buyers and Sellers your expertise and builds confidence that you are watching what is going on that might affect their transaction and that you are watching out for them.  In addition to the obvious value of preparing them for delays so that if they occur they are prepared.  Finally, it more strongly establishes your position of earning respect and trust which adds to your ability to be in control.  That is control in a good way, a necessary way, like a driver controls a car, or a Captain controls a ship.  As a professional you want to have earn that control.  It benefits everyone in many ways.

http://www.federalreserve.gov/newsevents/press/bcreg/regz20080714.htm

http://www.floridarealtors.org/NewsAndEvents/n2-072309.cfm

http://minnesotarealestateinformation.blogspot.com/2009/07/new-truth-in-lending-rules.html

 

2 Comments on New Change in Truth in Lending Act

JUL
28
188,234 Points Outside Blog

My mortgage broker says this will be a problem for one of my VA buyers who will have to extend his commitment/lock because the home isn't yet completed.  I was told the waiting period for the new statements was 5 days???

8:44am • #1
AUG
03

Laura,

I believe it is still three days

"If the annual percentage rate (APR) increases by more than 0.125 percent, the lender must provide a corrected disclosure to the borrower and wait an additional three business days before closing the loan."

Rich

12:06pm • #2

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Rich Levin

Brighton, NY

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Rich Levin's Success Corps Inc.

Address: 38 Model Lane, Rochester, NY, 14618-4016

Office Phone: (585) 244-2700

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