Notification summarized by Kimi Hammock, Certified Mortgage Specialist in Savannah, GA
New Regulations Z effective for all loans with an application date on or after June 30th, 2009.
Included Transactions secured by a mortgage loan:
For Refinances and Purchases of
- Primary Residences
- Second Home
- Investment Properties
Initial TIL Disclosures must be delivered to the consumer within 3 business days* of the application and at least 7 days prior to the consummation of the loan.
If the APR increases more than an 1/8 of a percent or 0.125% lenders MUST provide a Re-Disclosed TIL and the borrower is given 7 business days to review the new TIL.
The loan cannot close until the 8th day after the intial disclosures were mailed. If a re-disclosed TIL is needed, the borrower is given 3 business days to view the new TIL.
If the loan is in float status, a redisclosed TIL should not be provided each time there is an APR increase.
The lender does not have to re-disclose if the change in APR is decreasing.
The regulation will reduce or eliminate Rush Closings unless the borrower is facing a bona fide personal financial emergency that requires funds be disbursed during the wait period. This must be clearly communicated to borrowers at application to set appropriate expectations.
*Business days include Monday-Saturday but exclude Sundays and legal holidays.
For more info contact Kimi @ firstname.lastname@example.org
Also, visit my website http://activerain.com/kimihammock