Mortgage Disclosure Improvement Act, Effective July 30th

New Guidelines for all lenders both wholesale and retail are going into effect July 30th.

These new guidelines will affect COE (close of escrow) time frames and financing contingency timeframes. Buyers and Sellers expect longer timelines.

Short version…appraisals cannot be ordered until 4 days after upfront disclosures are mailed from the lender to the Buyer. Also if APR is .125% higher at docs than it was in the upfront disclosures, a new disclosure will have to go out to the borrower and it will take another 6-7 days before lending docs can be ordered. On a lower purchase price, .125% is a very small number. Since an appraisal cannot be ordered until four days after the file is received by the lender, Realtors will need longer financing contingency time frames.

Just like other fair lending disclosures acts/laws, this is supposed to help the consumer. That remains to be seen. One thing we know for sure, the more educated we are about this, the better.

If you would like more information, email me.

Tracy Pina