Get Ready! More laws coming down the pipe! (watch the video or read below)
HERA (The Housing and Economic Recovery Act) has amended the Truth in Lending act. This matters to everyone because it will change the way we all do business. The way deals will get put together will change, and it will put people in a tailspin if they aren’t ready.
Here’s the highlights:
1. Requires timeline of 7 business days from receipt of initial mortgage disclosure to closing
2. Requires Three business days from receipt of appraisal to closing
3. If the rate on your loan changes by more than 1/8th of a percentage point, a new lending disclosure is required, and there is an additional 3 day timeline.
There are other elements to the amendments to the Truth in Lending act, but these are the most impactful. If you look at it from a consumer protection framework, this makes sense. That is, of course, if you believe that the banks were entirely the bad guys, which I can tell you from experience, is not entirely the case.