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SUMMER 2009
New Disclosure Requirements:
July 23, 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. 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.
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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.
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The closing may not take place until expiration of a 7 day waiting period after the consumer receives the early disclosure.
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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.
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The consumer may modify or waive both waiting periods for a documented personal financial emergency, but must receive the disclosures no later than the time of the modification or waiver.
New Home Appraisal Rules Stir Backlash
Less than three months after new rules for home appraisers kicked in, the real estate industry is calling foul. The new guidelines essentially put a firewall between lenders and home appraisers. They also ended the practice of lenders using their in-house staff for initial home appraisals and prohibit the use of appraisal-management companies owned or controlled by lenders.
http://www.charlotteobserver.com/business/story/833643.html
When it Comes to the Real Estate Industry in N.C., Let’s Set the Record Straight
In an effort to dispel any mistruths and unsubstantiated facts about the housing market in North Carolina, NC REALTORS®’ July/August issue of 'For the Record,' a bi-monthly one-page document, is now available.
http://www.ncrealtors.org/uploads/FortheRecord7-09.pdf
N.C. Remains a Magnet for Newcomers
According to the U.S. Census Bureau, six N.C. cities ranked in the top 100 metros for growth in 2008, citing further proof that N.C. continues to attract newcomers despite the recession.
http://www.bizjournals.com/triad/stories/2009/06/29/daily51.html
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