Interest rates have declined today after a fab bond sale!

 

With the new disclosure requirements coming down end of July, the banks are reaching out to all parties involved with the mortgage closing to help out. Many states, do not require an attorney represent the borrowers/buyers in a transaction.. Some states use escrow companies to close for the bank. I am based in New York State where there are more attorneys than anybody else at the closing table.  We believe that everybody should have an attorney  represent them in a real estate transaction. Somebody has to be looking out for you! Here is just another reason why we cynical New Yorkers might be right. Below is a direct quote (from a bank memo received today) in a plea to the closing attorneys for assistance.

 As mentioned in my previous blog, on July 30, 2009, the new Housing and Economic Recovery Act (HERA) Mortgage Disclosure Improvement Act will begin requiring additional disclosures to the borrower. If not handled properly by all parties involved it could delay closings, lose rate locks and generally piss the borrower off. Whether there is a bank attorney involved or not, the borrower should know that somebody needs to be checking the following items:

The memo goes…….

“Most of the changes will be transparent to the consumer and real estate agent.  However, as a settlement agent, it is imperative you have a strong understanding of the requirements of the Act and how they impact the closing process for consumers. In particular, the areas where you can be of most help include:

 –Ensuring all fees impacting the APR are accurately communicated to the lender as soon as fees are identified.  Any increase in the APR of more than .125% will require a re-disclosure of the Truth in Lending (TIL) and could delay closing. The re-disclosure requires the consumer be given an additional three (3)-business-day review period prior to closing, after receipt. 

 –Providing a preliminary settlement statement with accurate fees to the lender, allowing the lender sufficient time to issue a revised TIL disclosure (if necessary) seven (7) business days prior to the scheduled closing date.

 –Scheduling signing/closing dates as accurately as possible in order to best estimate prepaid interest and avoid TIL re-disclosures.

 The point of the story is that people need to be checking and rechecking each other works. The extra layer of paperwork may create issues that only the borrower will suffer for. Be proactive, bother people!! It is your money.”

 Dale Siegel