On July 30, 2009 the new Housing and Economic Recovery Act (HERA) regulations will go into effect.
- They require all mortgage lenders and brokers to help prevent deceptive lending practices and protect customers by helping them become more informed.
- These new requirement could impact your closing dates.
The Four key elements you need to know :
- If the homebuyer is financing the property, these new regulatory and investor guidelines will impact – and could even dictate the closing date
- Upfront fees cannot be collected by the lender until the initial disclosures are received. Fees are needed to order the credit report, appraisal and get the process underway.
- The homebuyer must be provided with a copy of his or her appraisal a minimum of 3 days prior to closing
- An increase of more than .125% in the APR from the initial disclosures requires the Truth in Lending to be revised and reissued to the homebuyer at least 3 business days before closing.
Naoma Doriguzzi
We applied for an FHA loan in July and have been approved – we are due to close in three days. We are being told that being given an appraisal 3 days prior to close is not needed for an FHA loan, only conventional loans. Is this true?? The last thing we want is a delay!!