closing costs: Federal Mortgage Disclosure Improvement Act (MDIA) goes into effect on 8/1/09
- 07/30/09 08:07 AM
The Federal Mortgage Disclosure Improvement Act (MDIA) goes into effect on 8/1/09. This new Act applies to all applications dated 8/1/09 forward. The easiest way to understand the concept of MDIA is to think of it this way. Purchase loan borrowers now have the same protection as a refinance borrower, meaning the Act basically creates a rescission period of 3 days for purchase loans. What is happening here is the Federal Government is making sure purchase borrowers cannot get "jammed at the table" with new fees and feel forced to close. The borrower now has 3 days to understand any fee … (42 comments)
The Federal Mortgage Disclosure Improvement Act (MDIA) goes into effect on 8/1/09. This new Act applies to all applications dated 8/1/09 forward. The easiest way to understand the concept of MDIA is to think of it this way. Purchase loan borrowers now have the same protection as a refinance borrower, meaning the Act basically creates a rescission period of 3 days for purchase loans.;)
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