New consumer protection rules in effect as of Jan. 18, 2014 give mortgage applicants more information on why a loan is accepted or rejected. The new rules will help identify cases of discrimination, and empower buyers by providing appraisals and other data early enough that the buyer can contest the results.
Under the Jan. 18 rule, a lender:
• has three days after a mortgage application is submitted to tell an applicant that he or she will “promptlyget a copy of any appraisal”
• must provide a free copy of any valuation, which may include many commonly used reports, such as an appraisal report, an automated valuation model report, or a broker price opinion
• has to give an applicant the copies “promptly after the reports are completed” or three days before the loan closes, whichever is earlier
• has to provide the copies promptly even if your loan doesn’t close
• may charge an applicant a “reasonable fee for the cost of the valuation”
• can ask an applicant to waive the three-day deadline if the applicant agrees; in that case, the copies would be provided at closing
Buyers who don’t waive their right to early documents should receive a copy of the appraisal earlier in the process, giving them more time to review the underlying data the appraiser used. The new rule applies only to first liens, including construction loans and reverse mortgages. It does not apply to second mortgages or home equity loans. The relatively new Consumer Financial Protection Bureau (CFPB) oversees the change.
For more information on how you can benefit from a home appraisal, please call me, Frank Petras, Certified Luxury Home Marketing Specialist, at (239) 595-2221 or online at www.FrankPetras.com.
As a REALTOR in Naples, Florida with a very impressive international client list, I am known for my incomparable market knowledge, exceptional customer service, superior negotiating skills, high-end global targeted marketing and tremendous results. I have an unrivaled reputation as a luxury property specialist. I have earned local and national recognition for marketing and selling multimillion dollar luxury waterfront and golf course estates and other fine properties in Naples, Bonita Springs, Estero and the surrounding areas.
Source: Jan 2014 Florida Realtors®
Voted Best Real Estate Agent in Client Satisfaction in Southwest Florida - Gulfshore Life Magazine
John R. Woods' Emerald and Platinum Circles of Excellence
Realty Alliance Leading Residential Real Estate Sales Professional in North America
Appointed to Who's Who in Luxury Real Estate
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