Starting today, July 30th, certain disclosures have to be provided to borrowers within three business days when an application is taken.
This affects all types of loans offered in all 50 states.
The closing cannot be scheduled until at least 7 business days after initial disclosures have been sent out. Saturday is considered a business day. No Federal holidays or Sundays are included.
The lender will need to re-disclose if there are any changes made to a loan program, terms and/or APR. If the APR increases or decreases by .125% on fixed loans and .250% on ARM, they will need to re-disclose.
If re-disclosed, borrower will need to wait three business days after they receive the re-disclose packet. Therefore, it will be three days to receive the packet and three additional days to wait. The only way the three day wait will be waived is if the lender hand carries the disclosures to the borrower.
Lenders cannot collect any fees upfront except for the appraisal fee for which a credit card authorization form will be provided and charged once the report is completed by the appraiser.
There will be no exceptions to the above effective July 30th.
Please call your lender if you have any questions or concerns regarding these changes.
www.TeamDowns.com
Thursday, July 30, 2009
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