Hurry Up and Wait

New federal rules developed to protect applicants for home loans take effect July 30.
These require lenders to provide consumers with disclosures of the estimated mortgage costs within three business days of the loan application; prohibit lenders from collecting any fees prior to the consumer receiving the loan-cost disclosures; and prohibit "quickie" closings on loans.
Prior to this, many mortgage brokers and lenders collected fees covering appraisal, credit, and other charges at the time of application. The new rules eliminate this practice and prohibit lenders from collecting any fees until the consumer has received the truth-in-lending disclosures and an annual percentage rate (APR) calculation of the loan costs.
The new rules also require lenders to deliver a copy of the real estate appraisal to the home buyer three business days before the scheduled closing on the loan. Previously, federal regulations guaranteed that consumers could request and obtain a copy of the appraisal, but many home buyers were not aware of this right.
Additionally, the rules prohibit quickie closings on loans by requiring a seven-day waiting period after applicants are handed their early disclosures or the disclosures are mailed. This provides applicants a week to think about the transaction and to decide whether it is right for them. Final truth-in-lending disclosures are due three business days before closing.
We've been notified that if costs should change by even a small amount, that could trigger a new seven-day waiting period, and that we should estimate longer close of escrow periods because of the new rules...just in case.