Effective today July 30, 2009 there has been a new rule implemented in the mortgage industry. As of today there is a new way the loan process will flow. The change is for Reg Z Truth In Lending rules.
Going forward once your broker has registered the loan with the lender and supplied them with the Good Faith Estimate and Truth in Lending disclosure statement the lender will take the numbers that they have received and will mail them to the client. It is at this point when the 3 day waiting period begins. The broker/lender will not be able to order the appraisal until the 3 business days have passed, Sundays and Holidays do not count count in the 3 day period.
It is extremely important to get with your broker and review all of the fees to make sure they are properly marked as an APR item. If you are choosing your own attorney it would be a very good idea to get all of the fees up front from the attorney since these fees are APR related items.
If during the loan process the APR increases 1/8th of a point there will be another MANDATORY 3 day hold for re-disclosure and this could effect the loan closing or your rate lock. Although the Truth and Lending form is nothing new the process is definitely new.
Bottom line, work with your broker on the front end in order to prevent any hold ups on the file during the time sensitive process of the rate lock period.
Posted by Randy Ratchford. Randy is a Partner/Sr. Loan Officer with Horizon Financial. Randy can be reached toll free 877-627-9211ext107 or email RRatchford@HorizonFinancial.org
