If I had permitted my failures, or what seemed to me at the time a lack of success, to discourage me I cannot see any way in which I would ever have made progress.
Calvin Coolidge
Thursday, July 30, 2009
Housing and Economic Recovery Act (HERA) Mortgage Regulations
A new government regulation is going into effect on July 30, 2009.
This regulation requires all mortgage lenders and brokers to provide
Truth in Lending (TIL) disclosures to borrowers according to a defined
schedule. This schedule may alter your borrowers’ closing date
expectation. The regulation is in the best interest of our borrowers,
so it’s important we all understand and implement it thoughtfully
and consistently. In addition, we all need to work together to ensure
the changes that will result from this regulation are understood by
our borrowers.
Loans cannot close until at least seven days have passed from
date of application.
Lenders and brokers must issue the initial TIL disclosure at least
seven business days before loan consummation (document signing).
Regardless of how the initial TIL is provided to the borrower, closing
documents cannot be signed earlier than seven business days after
the initial TIL has been issued.
Changes start the three-day clock again.
If there are any changes to the loan parameters that affect the
Annual Percentage Rate (APR) on the TIL, the resulting APR must
be compared to the latest TIL provided to the borrower. If there is
an increase greater than .125% in the APR, the lender must provide
a corrected TIL to the applicant. Fees considered to be finance
charges that are used in the APR calculation include but are not
limited to discount points, lender and broker fees, Life of Loan flood
certification coverage, settlement agent or attorney fees. Borrowers
must be provided three business days to review this amended TIL
prior to loan closing.
Fees can’t be collected until disclosures
are received.
The regulation prevents the collection of all fees from
the borrower, except the expected cost of the credit
report, until the initial TIL has been received by the
borrower. This may delay appraisal orders or orders for
other essential services; therefore it’s very important
we work together to set your borrowers’ expectations
for closing accordingly. If the initial TIL is delivered to
the borrower face-to-face, fees for these services can
be collected at that time.
The changes this regulation will bring are positive ones
for our borrowers. This new regulation strives to ensure
borrowers have a clear understanding of the fi nancial
obligation they are about to assume. We look forward
to working with you to make sure borrowers have
ample opportunity to review their loan documents, are
well informed about the details of their real estate
transaction before consummation, and remain
confident in their home financing decision.
This regulation requires all mortgage lenders and brokers to provide
Truth in Lending (TIL) disclosures to borrowers according to a defined
schedule. This schedule may alter your borrowers’ closing date
expectation. The regulation is in the best interest of our borrowers,
so it’s important we all understand and implement it thoughtfully
and consistently. In addition, we all need to work together to ensure
the changes that will result from this regulation are understood by
our borrowers.
Loans cannot close until at least seven days have passed from
date of application.
Lenders and brokers must issue the initial TIL disclosure at least
seven business days before loan consummation (document signing).
Regardless of how the initial TIL is provided to the borrower, closing
documents cannot be signed earlier than seven business days after
the initial TIL has been issued.
Changes start the three-day clock again.
If there are any changes to the loan parameters that affect the
Annual Percentage Rate (APR) on the TIL, the resulting APR must
be compared to the latest TIL provided to the borrower. If there is
an increase greater than .125% in the APR, the lender must provide
a corrected TIL to the applicant. Fees considered to be finance
charges that are used in the APR calculation include but are not
limited to discount points, lender and broker fees, Life of Loan flood
certification coverage, settlement agent or attorney fees. Borrowers
must be provided three business days to review this amended TIL
prior to loan closing.
Fees can’t be collected until disclosures
are received.
The regulation prevents the collection of all fees from
the borrower, except the expected cost of the credit
report, until the initial TIL has been received by the
borrower. This may delay appraisal orders or orders for
other essential services; therefore it’s very important
we work together to set your borrowers’ expectations
for closing accordingly. If the initial TIL is delivered to
the borrower face-to-face, fees for these services can
be collected at that time.
The changes this regulation will bring are positive ones
for our borrowers. This new regulation strives to ensure
borrowers have a clear understanding of the fi nancial
obligation they are about to assume. We look forward
to working with you to make sure borrowers have
ample opportunity to review their loan documents, are
well informed about the details of their real estate
transaction before consummation, and remain
confident in their home financing decision.
Improving the value of your home
Improving your home costs money, and everyone wants to ensure that they increase the resale value of their home and ability to recoup costs. There are specific areas of a home that can be remodeled and bring the greatest return on investment. These areas include deck, kitchen, window replacements and new siding.
Although the home market is slow, there are certain home improvements people can make to their homes which makes the home easier to sell. This is called “curb appeal,” which is especially important in today’s online real estate industry.
Many people shop online for homes, before they follow up with an actual visit. Curb appeal is critical in online photographs. If a home appears to be rundown or in poor condition on the outside, these people will never come to see a home that may have just been completely remodeled on the interior.
Although the home market is slow, there are certain home improvements people can make to their homes which makes the home easier to sell. This is called “curb appeal,” which is especially important in today’s online real estate industry.
Many people shop online for homes, before they follow up with an actual visit. Curb appeal is critical in online photographs. If a home appears to be rundown or in poor condition on the outside, these people will never come to see a home that may have just been completely remodeled on the interior.
Smal Hike in Mortgage Rates
Mortgage rates rose for a second week as Treasury yields climbed, a move that does not bode well for the hard-hit housing market.
Interest rates on 30-year fixed-rate mortgages averaged 5.25% this week, up from last week's 5.20%, according to a survey by home funding company Freddie Mac.
The mortgage rate was significantly higher than the record low 4.78% set the week ended April 2. Freddie Mac started the Primary Mortgage Market Survey in 1971.
Mortgage rates remained above 5% for a ninth week. Experts say rates at 5% and below are needed to make a significant impact on home loan demand.
Treasury yields, which influence mortgage rates, have risen recently, with mortgage rates responding in kind.
Interest rates on 30-year fixed-rate mortgages averaged 5.25% this week, up from last week's 5.20%, according to a survey by home funding company Freddie Mac.
The mortgage rate was significantly higher than the record low 4.78% set the week ended April 2. Freddie Mac started the Primary Mortgage Market Survey in 1971.
Mortgage rates remained above 5% for a ninth week. Experts say rates at 5% and below are needed to make a significant impact on home loan demand.
Treasury yields, which influence mortgage rates, have risen recently, with mortgage rates responding in kind.
A Going Green Tip
Turn Off Your Computer
Save energy and wear and tear on your hardware by shutting down your computer at night. You'll save an average of $90 of electricity a year. The Department of Energy recommends shutting off your monitor if you aren't going to use it for more than 20 minutes, and the whole system if you're not going to use it for more than two hours.
Save energy and wear and tear on your hardware by shutting down your computer at night. You'll save an average of $90 of electricity a year. The Department of Energy recommends shutting off your monitor if you aren't going to use it for more than 20 minutes, and the whole system if you're not going to use it for more than two hours.
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