ALERT! New Laws and Regulations that Impact All Lending Transactions:

There are two new laws that are impacting the lending industry: the Home Valuation Code of Conduct (HVCC) and the Housing and Economic Recovery Act (HERA). These laws were developed as part of new regulations and changes to the existing Truth in Lending Act. Protecting the client is top priority so these rules are a very positive step for our industry.

In order to help you continue to meet your closing date we would like to share with you that the laws will result in a longer closing time due to the required procedure of the new disclosure practices. When signing closing agreements please make sure to give yourself at least 30-45 days for funding your transaction: below is a brief description to give you an idea of what time frame you will be seeing from your lenders.

HVCC: Home Valuation Code of Conduct The HVCC regulations help to shield appraisers from undue influence from mortgage brokers/bankers, real estate agents and clients. This helps protect the real estate industry by alleviating deceitful appraisal practices and to keep valuation practices uniform for the client and stability of local housing markets. The legislation also keeps the client apprised of what the appraisal comes in as requiring the mortgage broker/banker to give the client a copy of the appraisal at least 7 days before the transaction is signed.

HERA: Housing and Economic Recovery Act The HERA amends the Truth-In-Lending Act (TIL), implemented through Regulation Z. There are many provisions in regards to re-disclosing the Truth-In-Lending form required for any loan transaction based upon a number of factors. Basically if your APR changes 0.125% up or down from the time of initial application the lender must re-disclose that information on the Truth-In-Lending form to you. Potential impacts to the APR can come in the form of: unlocked rates which need to be locked at a different rate than was initially quoted, change in loan amount, loan product change (ie. 30 year fixed to a 15 year fixed), rate re-lock due to market improvement, change in closing dates, or even changes to fees inclusive of settlement agent (title/escrow) fees.

If you would like to learn more about the new laws and regulations, and how Summit Mortgage can actually speed up your closing time by being both a Mortgage Broker and a Mortgage Banker please call today. One of our Central Oregon Consultants would love to speak with you.

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