REGULATION Z WILL EFFECT REAL ESTATE TURN TIMES IN FLORIDA

REGULATION Z TAKES EFFECT AT THE END OF JULY 2009.

The Federal Reserve Board issued final amendments to the rules under Regulation Z, which includes comprehensive changes to the format, timing, and content requirements for disclosures under Regulation Z, and the Truth in Lending Act (TILA). These significant changes are going to drastically change the way real estate and mortgage professionals conduct business.

The main objective is to curtail last minute changes in the loan application process. If the Truth in Lending statement changes more than .125% of a percentage point, this will require the loan to be re-disclosed and have a seven day waiting period to close. This includes fees such as broker, real estate and some title fees. I have designed a timeline below of the actual changes during the entire phase of the real estate transaction.

1. Borrower applies for loan. The initial disclosures are sent from the lender (not mortgage broker) upon registration. The mortgage professional cannot take an application fee at this time. He is free to take an upfront credit report fee. The clock starts ticking at this point.
2. At day five the mortgage professional can now take an application fee and order the appraisal. The lender will require that the borrower receives the disclosures prior to uploading the loan file.
3. If any material changes to include loan amount, program, rate & fees change during the loan process there is a mandatory seven day waiting period for the lender to redisclose the borrower with the changes.

What does this mean to the real estate professionals? Make sure you have a competent loan officer. It is imperative to get the upfront fee correct from the title company, realtors and any other third party players.

Make sure your borrower selects the right program and rate upfront. If you are floating the rate, make sure to give yourself ample time to lock and rediclose, so you do not get stuck in the seven day hold period. Attention to Detail will be critical to making the normal 30 day window for closing. NO MORE ranges for fees etc. ACCURACY ACCURACY IS KEY !

If you want more info, please click below

http://www.fdic.gov/regulations/laws/rules/6500-1400.html

Update on Consumer Financial Protection Act of 2009

This article was taken from the Mortgage Banker Assoc
Sorohan, Mike
Mortgage Bankers Association President and CEO John Courson will testify this morning at a House Financial Services Committee hearing on the Obama Administration's proposed reforms for the real estate finance industry.

The hearing focuses on H.R. 3126, the Consumer Financial Protection Act of 2009. Introduced by Committee Chairman Barney Frank, D-Mass., and Rep. Maxine Waters, D-Calif., the bill formalizes a proposal by the Obama Administration to create an independent financial agency with a range of rulemaking, information-gathering, supervisory and enforcement tools affecting banks and non-bank financial institutions.

Courson is expected to iterate MBA's belief that more consumer protections are needed. However, MBA has urged Congress to move cautiously, warning that changes to the U.S. financial regulatory structure would likely have profound effects on availability and affordability of mortgage financing and other financial products.

Courson is also expected to discuss MBA's own proposal to establish rigorous lending standards and a new federal regulation of financial services institutions.

Yesterday, in testimony before the Senate Banking Committee, Treasury Assistant Secretary for Financial Institution Michael Barr said the Administration's proposal has a simple purpose: to protect consumers across the financial services landscape.

“The need could not be clearer,” Barr said. “Today's consumer protection regime just experienced massive failure. It could not stem a plague of abusive and unaffordable mortgages and exploitative credit cards despite clear warning signs. It cost millions of responsible consumers their homes, their savings, and their dignity. And it contributed to the near-collapse of our financial system. We did not have just a financial crisis; we had a consumer crisis. Americans are still paying the price, and those forced into foreclosure or bankruptcy or put through other wrenching dislocations will pay for years.”

Joining Courson in testimony this morning: Steve Bartlett, president and CEO of The Financial Services Roundtable; Chris Stinebert, president and CEO of the American Financial Services Association; Steven Zeisel, vice president and senior counsel with the Consumer Bankers Association; Todd Zywicki, professor of law at George Mason University; Denise Leonard, vice president of government Affairs with the National Association of Mortgage Brokers; Edward Yingling, president and CEO of the American Bankers Association; and R. Michael Menzies Sr., president and CEO of Easton Bank and Trust Co., on behalf of Independent Community Bankers of America.

The hearing begins at 10:00 a.m. ET in Rayburn House Office Building room 2128. MBA NewsLink will provide coverage. The hearing can be viewed online at http://financialservices.house.gov/
www.CoreMortgageFinancial.com

NEW HVCC LENDER APPRAISAL UPDATE

I finally have some good news to report on HVCC appraisal transfer

As a result of the Freddie Mac / Fannie Mae Home Valuation Code of Conduct Policy (HVCC) must ensure certain procedures are followed when transferring appraisals from lender to lender.

Appraisal being transferred from lender to Lender
When transferring an appraisal from another Lender, HVCC will not allow the borrower to transfer directly. it has to be the mortgage professional
A signed letter from the applicant requesting the appraisal to be re-assigned is required.
Appraisal Transfer letter from the lender on their letterhead is also being discussed
HVCC Certification - we will only accept our HVCC Certification which will be posted early next week in
The client advocate for the lender will take the step to upload the file

This will save the borrowers money, time and efforts !!

www.CoreMortgageFinancial.com