The new Mortgage Disclosure Improvement Act of 2009 will go into effect as of July 31, 2009. Basically, it includes more forms to sign within a certain timeline, three days from this date or seven days from that date. The mortgage industry is being schooled on the guidelines and techniques with memos and webinars, so we should have it down by then.  As the consumer/homeowner/borrower, you need to know two things:

 

3 days: The truth-in-lending disclosure needs to be mailed to you within three (3) business days of the lender receiving your loan application. No fees should be paid by you until this is mailed out. In other words, do not send any money upfront, even for a credit report or a pre approval.

 7 days: The truth-in-lending form must be sent to the borrower again seven (7) business days before the closing. This would be a revised form, reflecting your final fees and locked in interest rate.

 As you see, business days are the ones that count. Every day and Saturday count as a business day. Sundays and official Federal Bank Holidays do not count!

 Official Federal Bank Holidays are the following:

•  New Years Day
• Martin Luther King, Jr. Birthday
• President’s Day
• 4^th of July
• Labor Day
• Columbus Day
• Veterans Day
• Thanksgiving Day
• Christmas Day

 Please hope that your lender notes these dates on their calendar. For more information on MDIA, please refer to the last few weeks in my blog.

 Dale Siegel