New Federal law and regulations are changing the requirement for residential mortgage transactions. Sellers and buyers benefit by being informed about these new procedures to improve YOUR closing experience.
The Effect upon Transaction Timelines:
The earliest any home purchase transaction can close is seven business days* after the initial mortgage disclosures are received by the borrower.
These must now be received by the borrower before upfront fees can be collected by the lender. Credit Report Fee is an exception.
Homebuyer must be provided with a copy of their appraisal at least three business days prior to closing**.
Homebuyers must receive a revised TIL disclosure at least three business days before closing** should there be an increase of more than 0.125% in the Annual Percentage Rate (APR) from the initial TIL. This provides the homebuyer with the time required to decide if they are comfortable with their loan choice.
- Potential APR Impacts:
- Unlocked rate
- Product change
- Change in closing date
- Change in loan amount
- Rate re-lock due to market improvement
- Changes to fees, inclusive of settlement agent fees
*Saturday is a business day for purpose of disclosures
**Closing refers to the signing of the loan documents