Puget Sound Business Journal – Contributing Writer
January 16, 2015
New regulations will be top of mind for the mortgage lending industry in 2015.
One regulation starts in August that will have a significant impact on the industry and housing. New consumer disclosures will be required, but with these disclosures come mandated “waiting periods” after the lender has provided the disclosures. To comply, lenders will face making substantial changes to their systems.
In the current lending process, once a lender approves a loan, the closing documents can be prepared and borrowers can execute the documents and close the loan shortly thereafter. Under the new regulation, certain closing documents have to be provided for the borrower at least three days before they can sign them. Some of these documents are currently prepared by the closing agent for the transaction, but the new regulation shifts the burden to the lender.
If there are any changes to the loan terms, even if requested by the borrower, new disclosures and a new three-day waiting period may be required. It’s important that mortgage industry participants educate housing industry partners (real estate agents, builders, developers, etc.) and the home-buying public about the potential impact on real estate transactions.
Complete article in the Puget Sound Business Journal http://bit.ly/1CfW7bj