Kimi Hammock

Set realistic expectations for your clients.

Guidelines are tightening across the board. The work of processors, underwriters, and closer departments are increasing to ensure loan quality. These new guidelines are effecting turn times and closing dates. In order to coach your borrower, you must know the loan type and the estimated turn times for that loan. Regulation Z has done away with quick closings. And guidelines are pushing closings further back.

USDA loans take twice as long to get from application to closing. These files are being underwritten twice; once at the company/broker and again at the regional USDA office in your area. Know up front what your time constraints are so your borrower has reasonable expectations.

Remember, the tax credit has not yet been extended. Loans must FUND prior to December 1, 2009 in order for the borrower to qualify for the tax credit. Borrowers can ammend their 2008 taxes with a simple form. I had a client received his tax credit in 3 weeks. It might take longer now that we are closer to the deadline, but it is supposed to be received within 6 weeks.

Talk to your preferred loan officer about realistic turn times to make sure no one is at a closing table without a package. Or more importantly, so no one is without a home while waiting on a closing.

Notification summarized by Kimi Hammock, Certified Mortgage Specialist in Savannah, GA

http://activerain.com/kimihammock

New Regulations Z effective for all loans with an application date on or after June 30th, 2009.

Included Transactions secured by a mortgage loan:

For Refinances and Purchases of

• Primary Residences
• Second Home
• Investment Properties

Initial TIL Disclosures must be delivered to the consumer within 3 business days* of the application and at least 7 days prior to the consummation of the loan.

If the APR increases more than an 1/8 of a percent or 0.125% lenders MUST provide a Re-Disclosed TIL and the borrower is given 7 business days to review the new TIL.

The loan cannot close until the 8th day after the intial disclosures were mailed. If a re-disclosed TIL is needed, the borrower is given 3 business days to view the new TIL.

If the loan is in float status, a redisclosed TIL should not be provided each time there is an APR increase.

The lender does not have to re-disclose if the change in APR is decreasing.

The regulation will reduce or eliminate Rush Closings unless the borrower is facing a bona fide personal financial emergency that requires funds be disbursed during the wait period. This must be clearly communicated to borrowers at application to set appropriate expectations.

*Business days include Monday-Saturday but exclude Sundays and legal holidays.

For more info contact Kimi @ kghammock@gmail.com

Also, visit my website http://activerain.com/kimihammock

Or http://localism.com/agents/kimihammock