We wanted you to be aware of the vast changes that have once again
challenged our industry beginning January 1, 2010. The new Regulation
X (as it is being called) dramatically affects the way disclosures are
handled on the loan side of a purchase or refinance. This has hit the
whole industry nationally, whether the loan is done through a bank,
broker or mortgage banker.
The new GFE (Good Faith Estimate) 2010 may have ramifications on the
time a transaction can be completed and any changes that may affect
the deal along the way. Any “change” to rate, fees, extensions, sales
price, credits, etc… or anything that may affect the APR of the loan
could impact the ability to close on time. Due to these changes, it
has never been more important to fight for a reputable escrow, title
and lending institution that you know and trust to handle your
transactions. This is not a market for rookies!
There are many lenders pushing for changes to the purchase contract to
now extend the loan contingency dates and to encourage longer escrow
periods to allow for these changes. Many rush situations will now be
completely out of the control of the lender to accommodate, as any
change to the transaction will set into effect a new process for
re-disclosure, so please establish realistic time frames when
negotiating your purchase contract.
We will be sharing a lot of information on a go forward to keep you
informed, but wanted to make sure you were aware of some of the
implications of the changes that went into effect. This is said to be
the biggest change to the mortgage lending industry in over 20 years
and will have a vast impact on the ability to modify and change
purchase transactions and any change that will impact the APR on the
loan.
We have hit the ground running with significant training and education
to keep us at the front of the pack. We will keep you informed as to
how the change is impacting the lending world and to keep you up to
date on what you can expect for the future.
We appreciate your support and will guarantee that we will do
everything in our power to educate you and your clients and to insure
a smooth lending process for your clients. We are committed to your
success and know that 2010 will be solid year for Real Estate.
