by Dru Bloomfield on July 24, 2009
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Important changes are occurring in the lending process. These intent of these changes is to better protect home buyers, by providing specific timelines for lender actions and disclosures. However, a home buyer does need to know that loan changes during escrow may have an impact on the closing date.
From the National Association of Realtors web site:
Revised Truth in Lending Disclosure Requirements Take Effect on July 30, 2009
Lenders will be subject to new disclosure requirements for mortgage loans under the Federal Reserve Board Truth in Lending Regulation (Reg Z). The new requirements apply to loan applications filed on or after July 30, 2009. The new rules are complex and compliance will be a challenge for lenders. REALTORS® will want to learn the basics so they can advise clients of potential delays and the new procedures.
Here are key highlights of the changes:
- The new requirements apply to all mortgages secured by a borrower’s home, including primary and second homes and refinancings. Investor loans continue to be exempt.
- Lenders must give good faith estimates of mortgage loan costs within 3 business days after the consumer applies for a loan (early disclosure). The lender may not collect any fees before the disclosure is provided, except for a reasonable fee for obtaining a credit report.
- The closing may not take place until expiration of a 7-day waiting period after the consumer receives the early disclosure.
- If the annual percentage rate (APR) increases by more than 0.125 percent, the lender must provide a corrected disclosure to the borrower and wait an additional 3 business days before closing the loan. The APR includes not only the interest rate on the loan but certain other costs related to settlement, so it will be important for any fees that affect the APR to be as accurate as possible, as early as possible, to minimize the need for a corrected TILA disclosure.
- The consumer may modify or waive both waiting periods for a documented personal financial, but must receive the disclosures no later than the time of the modification or waiver.
Wells Fargo Mortgage has been very proactive in getting this information out. I received a packet in the mail, plus an invitation for training. They also have the following six page document that you can review. It’s written for Realtors, but so many home buyers are educating themselves on the home buying process, I think it’s good info to share. You will see what documentation and review times you are provided by the new law.
Well Fargo Mortgage Truth in Lending – How the new government regulations may impact your closing dates
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by Dru Bloomfield on February 23, 2009
The title of this post is a quote from John Burns, a real estate consultant out of California. I recieve his email newletters regularly, and for the most part they consist of statistical charts and a grading of local economies for major cities in fifty states.
Read more about what his Local Anaylsis newsletter starts out with this week:
Phoenix is the most unique market in the country right now. Any renter with a stable job and the desire to become a homeowner and live in Phoenix for a long time should be buying a home right now because affordability has never been better (our analysis goes back to 1981).
However, the problem is that few have a stable job. Phoenix has lost a whopping 86,800 jobs in the last 12 months, which is 4.5% of its employment base, and every major sector of the economy has lost jobs except Education and Health Services.
The article goes on to compare the cost differences in renting vs. owning, showing a $700/month swing since 2006. He also indicates the low-down government backed loans may not be around forever.
Read the full article “Owning is Less Expensive Than Renting in Phoenix” .
by Dru Bloomfield on March 27, 2008
I received an email from a potential home buyer this week, telling me that it is not a good time to buy a home. I didn’t necessarily agree, so I shared some of the following information with her.
I asked if she’d be following the interest rate forecasts, and let her know that inventories (homes for sale) are starting to level off. In some Scottsdale zip codes, median list prices are starting to increase.
Some other reading that I recommended included the Time magazine article “Ignore the Headlines“.
And also, the article from Tuesday’s Arizona Republic, “After months of declines, existing-home sales up”
My perspective is that we won’t know that we hit the bottom of this market, until it’s past.
The writer responded back asking for more information on the areas where listing prices have been increasing, and I’ll share that Scottsdale update with you tomorrow.
Two other related posts on our current real estate market:
by Dru Bloomfield on March 24, 2008
Here’s a helpful home buying vs. home renting calculator from the New York Times web site. What I really like about this calculator is that it gives you a lot of info with just a couple changes to match your location. It also gives you a visual look at when you start seeing the savings (if any) of buying a home in your market.
In Scottsdale, property taxes are less than what the calculator defaults to, so I suggest changing the percentage to .5% to be closer to our rates.
(Thanks to Vicki Moore over at AgentGenius for sharing the link to helpful tool.)
by Dru Bloomfield on March 17, 2008
I got a call from Misty Williams at the East Valley Tribune this past week for an update on the Scottsdale real estate market. It’s challenging to cover such a wide-ranging topic in a twenty minute phone call, yet Misty asked some excellent questions and took away the key points of our conversation. The front page photo coverage was wonderful for my newest Scottsdale home listing and I hope you take the time to read: ”Scottsdale’s desirability helps it in slump“.
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