Written By: Karen Deis
Unless you have been living in a cave the last few months, you are aware that your life in the mortgage business, as you know it, has changed as of July 30, 2009.
The Mortgage Disclosure Improvement Act will impact ALL owner-occupied real estate transactions where there is a mortgage involved, including mortgage modifications, time-shares, reverse mortgages and vacation/2nd homes.
Yes, the Federal Register has 76 pages of instructions. To simplify it for your real estate agents, builders and clients, here’s a shortened version you might use to explain the process and the mandatory waiting periods required by law.
The bottom line is that the new rules are all about giving the borrower time to decide if they want the loan they applied for at the time of application.
RULE: Borrowers have 7 days from the “official” application (meaning they must have a property address) before they can close the loan.
TRANSLATION: Rush closings are a thing of the past – even if a file is transferred to you from another mortgage company.
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