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Oh Great..More BS from the Guvt! HERA Mortgage Disclosure Improvement Act

Mortgage and Lending with Funky Quail Vintage

I received an update yesterday from Wells Fargo, and as usual, they are getting in front of the change!  YEAH for them!  Here is what I received...PAY ATTENTION LOAN OFFICERS!

One more thing we can thank WALL ST for..

 However, are any of these REALLY bad ideas??

Only one I SEE, is that NOW, and I am getting clarification, we will have to disclose TWICE??  Arghh... 

Oh and NICE APR suggestion!  People still dont even know what the APR is??  Now, we can really call the Truth in Lending disclosure, the Truth & Confusion form!

For all of you who would like me to be specific..this MAY BE a "Lender overlay", but I doubt it!  More than likely if the lender you fund with hasn't published something similar, they will be following suit.  Wells Fargo tends to be a leader, not a follower!




The Mortgage Disclosure Improvement Act, effective July 30, 2009, part of the Housing and Economic Recovery Act (HERA) of 2008, specifies new requirements for the disclosure portion of the loan application and fulfillment process. Highlights of these changes include:

Collection of Fees:  No fees, other than a bona fide and reasonable credit report fee, can be charged prior to the applicant's receipt of the initial Truth-In-Lending (TIL) disclosure.

New Business Day Definition: Saturdays are now considered a business day for purposes of disclosure receipt. Business days will include all calendar days except Sundays and federal holidays.

Timing of Disclosures: Early disclosures must still be provided no later than three business days after receipt of an application. Under the new rule, early disclosures must also be provided at least seven business days before closing/signing.

Early Disclosure: The initial Truth-in-Lending (TIL) disclosure is required to be provided to the borrower on both purchase and refinance transactions involving a borrower's principal or secondary dwelling.

APR Change: If the APR increases by more than 0.125 percentage points from the value last disclosed to the borrower, a corrected Truth in Lending (TIL) disclosure must be furnished to the borrower at least three business days before closing/signing.

Re-Disclosure Mailing Period: When corrected disclosures are mailed, the borrower is presumed to have received their corrected disclosures three business days after mailing.




Here is what WELLS FARGO said about THEIR view on HERA!

"Wells Fargo Wholesale Lending continues to evaluate the requirements set-forth by HERA. We are committed to keeping you informed of changes taking place in our industry and here at Wells Fargo. Look for more information over the coming weeks."

Much like the TAX CREDIT, I will wait and see...and if it happens it happens....it is what it is....do what you have to do....we are going to play them ONE DAY AT A TIME....oh, sorry for all the metaphors!  NOT!


I have heard Realtors,Consumers,Appraisers,The general pulic,TV,News Media, and others asking for more "transparency"...HUH?? How much more do we really need until we get a grip...and start asking the customer to accept some responsibility??  We already have 27 documents we have to have signed...now, we are going to have to have 12 more??  Sweet!  I can't wait!

Thank you?

 As always, I welcome ALL of your comments, questions, concerns and issues!

If you prefer, you can email me at Darin@osmwi.com, or call me at 608-592-2227

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Bettina Settles
Greenwood, IN
Your Indiana Connection

I have read about the changed and it looks like it falls in line with the new GFE and HUD-1 we all have to use soon.


Jun 02, 2009 02:11 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Yepper!  It is RIDICULOUS tho, that we have to disclose within 3 days, then again a week before, and I AM SURE they will have a FINAL 1003, etc...signed at closing too...That, and on a refi 3 business days to STILL turn the loan down??  I mean gosh, this is ridiculous!  once again, a few bad apples ruin it for the rest of the orchard!

Thanks for Sharing..I appreciate it!


Jun 02, 2009 02:15 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Hi Darin, great info/clarification....I was at a closing yesterday and the lender was talking about big changes coming..some of what you described...sounds like only the strong/larger banks will survive.....

Jun 02, 2009 02:25 AM
Roy Kelley
Retired - Gaithersburg, MD

Thanks for the information. Hope we can find consumers that understand the regulations.


Jun 02, 2009 02:27 AM
Thomas E. Elder
Mortgage Broker Compliance Consultants - Forest Hill, MD
Founder, Mortgage Broker Compliance Consultants

If Saturday is now a business day for disclosures then the Fed should stay open so that funds can be wired and loans can fund on Saturdays too, right? :)

Jun 02, 2009 02:29 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Hey there Kristin!

Yep, these changes are happening, but geezzz...where does it end..??  I dont mind doing ANY OF this, but it does make the process more arduous...!  This is borderline ridiculous...and the lenders hide behind the fact that their "investor" is requiring...Well, in this case...it was Investor driven..that's for sure!  Thanks again! 


Jun 02, 2009 02:29 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Darin, I hate surprises, especially at closing. It has been a long time since I have seen junk crap fees on my client's HUD. I hope this doesn't become another worthless law that has no teeth that creates another hurtle to getting a loan...

Jun 02, 2009 02:30 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Roy-  As always thanks for you comments!  There aren't any consumers that understand the regulations!  :)  GOOD LUCK!  LOL...

Jun 02, 2009 02:30 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

TOM-  I WAS HOPING AND PRAYING someone would catch this!  GREAT JOB! 

It gets worse tho....a TITLE COMPANY has to want come IN on Saturday..and even FUND the loan!  Funny thing is, that we have used Saturday as a Recission day for years!  In other words, close Thursday, and it goes FRIday, Saturday, Monday at midnight...FUND on TUesday! 

HOWEVER< if you close TUESDAY, and i am hoping this is what it was desigend for...THEN what will have to happen....It will go Wednsday,Thursday, Friday at Midnight , fund Saturday...I can see it now...people getting CHECKS on Friday nights, dated for Saturday, and told "dont cash this check until tomorrow, or I will get in trouble!"...OMG...this is ridiculous!  It is almost INSPIRING more fraud! 

The fed will NEVER come in on a Saturday, let alone the wiring system, or the banks!    ARghhhh..

Today, you get the coveted HOORRAY for you!  -  Thanks!  Darin


Jun 02, 2009 02:34 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

PAUL!  You get the nail..cuz you hit it!  Yes, it is a worthless, stupid, teethless pain in the butt!  I will do it, and not argue about it.  However, it will create ALOT more problems than it will solve!  Again, how many times do we have to do things to protect consumers before SOMEONE figures out that consumers are responsible for being stupid too!!!!   :)   Again, Argghhhh...It will not create hurdles for GETTING LOANS< but I assure you, if something isnt JUSSST right, it WILL delays closings!!!!  at least for the first 3-6 months..till everyone gets used to it! 

Thank you very much for commenting!


Jun 02, 2009 02:38 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

NO NO NO!  I don't know how much more change I am willing to bend over for.  This is getting beyond ridiculous.  No it has been beyond ridiculous but you know what I mean!

Jun 02, 2009 01:06 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Oh Buckster...Saturdays for us are always work days :).....and the changes continue and we appreciate you staying on top of them and sharing them...hope you fired that Babe in your phone...she is very rude.

Jun 02, 2009 11:47 PM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495


One more day before the legislation bites us!  One thing that could stretch this out yet farther is the fact that, while presently, Sundays and Federal Holidays don't count (I guess people can't think on those days,) Saturdays are only included as a business day because the post office delivers mail on Saturdays.  There's pending legislation (I've heard) to cut Saturday mail delivery as a cost-cutting measure.  And the unintended consequence is...?!

Mike in Tucson

p.s.  I LOVE the new company!

Jul 30, 2009 10:43 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Hey Mike,

I have already seen one of my approvals TELL ME when I could close!!  RIGHT ON THE APPROVAL!  WOWSERS, another thing REALTORS are just going to love!

Yes, I think there are going to be some KINKS in the armor, that is for sure!

GLAD you like the new job!!  Run with it man! -  Darin

Jul 31, 2009 01:37 AM