New Government Disclosure Requirements Taking Effect

[Patty Crews]

Hello,
Attached is a current rate sheet for your use as a guide… Remember, the affordability index is the lowest it has been for 40+ years! (low rates and low real estate prices)

The time has arrived! ON JULY 30, 2009 (this Thursday) the new government disclosure requirements will take effect (HERA). Compliance is required by all mortgage lenders and mortgage brokers. The goals are to help prevent deceptive lending practices and to make sure borrowers are provided with the details and time needed to make a more informed decision about the mortgage product. We are proud to say that those goals closely align with our fair and responsible lending practices that we continue to support with every transaction.

So what are we doing to help educate our partners and our borrowers?
With each application, we will be providing borrowers the one page form attached. You might want to save this:
We will be providing our borrowers with accurate good faith estimates at application or preapproval—with “fudge” factors included for all items we are uncertain of (we will overestimate attorney charges, insurance…).
We will be visiting attorneys and emailing them to request preliminary HUDs well in advance so we can fine tune the GFE with exact charges for attorney and tax fees. We would like this to be done two weeks before the closing.
We will review with the borrower two weeks before closing their loan amount and interest rate, in case they want to make any changes. If they do, it will be done early so any re-disclosure can be done well in advance.

Our recommendation to you is to make your contracts for 30 days minimum for houses and 45 days for condominium sales. Also, you might include the verbiage I gave earlier: an automatic extension should closing be delayed because of the new government disclosure requirements.

If you have any questions or this is the first time you have heard about the new changes to REG Z, please call me or Jim.

Have a great weekend and we are here to help you—if you are working, we are working.

Our goal is to be your #1 Recommended Lender!

Sue Ann Hess
Certified Mortgage Planning Specialist
Mortgages Unlimited, LLC
An Affiliate Of Wells Fargo Home Mortgage
MAC M7816-011
99 Main Street
Hilton Head Island, SC 29926
(843) 682-5715 Tel
(843) 682-5792 Fax
(843) 298-9816 Cell
sue.a.hess@mulender.com

www.wfhm.com/wfhm/sueann-hess