New Regulations & Your Closing

Posted by Phil Boren on Thursday, August 6th, 2009 at 2:46pm.

We have some new federal regulations in place that may affect your closing - at least as far as dates are concerned. Known by acronyms such as HOEPA, HERA, and HVCC, these new regulations affect the way lenders and appraisers interact with you and the ways in which information is disclosed to you. Not a bad thing per se, but the details of these changes may require fairly diligent monitoring during your real estate transaction to avoid problems. As an example, if anything changes during your transaction that raises the APR on your loan more than .125% (1/8th of a point) from the initial Truth in Lending (TIL), the lender must provide new disclosures to you and a mandatory 3-day waiting period before closing starts all over. If this were to happen at the last minute, it could jeopardize the funding of the new loan, and ultimately the closing date. Suffice it to say there are lots of new opportunities for problems and delays in your closing.

Our friends at Wells Fargo have prepared a report on the details and potential impact these new regs could have on your next closing. Please click here to review this report and feel free to contact us if you have any questions.

Phil Boren
Direct: 303-441-5647
Email: pboren@remax.net
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