October « 2009 « Home Loan Information

8Oct/090

Last Minute Questions About First Time Home Buyer Tax Credit

Like it or not it’s coming to an end. There has been much lively debate about whether it should have existed to begin with, whether it should be increased and whether it should be extended. All of those aspects are all over the Internet. This is to remind you there is very little time left – today there are only 52 days left to CLOSE. Say what they may at some broker/lender houses it is taking an average of 35 days to close from the date the fully executed contract is received.

If you have not yet identified a home and made an offer you are going to be very hard pressed to get closed in time to take advantage of the Federal First Time Home Buyer’s Tax Credit. If you have questions don’t wait any longer – pick up the phone and call me at 678-439-8683 or complete the form below now. Not tomorrow, not after you get back from your break … now!

6Oct/090

What Is The MDIA – Mortgage Disclosure Improvement Act?

The MDIA Rule went into effect, in part, on July 31, 2009. Many people still are not aware of this rule and how it may affect every closing in the nation. This rule, unlike some others, applies to banks, lenders and brokers equally.? In short it says the Truth-In-Lending document with an accurate Annual Percentage Rate must be delivered to the borrower a minimum of seven (7) business days before closing.

This rule affects all loans whether it is an FHA loan, a Fannie Mae loan, a Freddie Mac loan, or a Ginnie Mae loan. The MDIA affects loans originated by brokers, lenders and bank employees. The MDIA applies to new homes, previously existing home and home refinance loans.

Here is the catch: If the APR changes more than .125% the Truth-In-Lending (the other 1/2 of the Good Faith Estimate) has to be resent and another waiting period of three (3) business days must expire. Some lender interpret that to include a decrease in the APR of more than .125% and some only consider an increase of more than .125% since the government’s action does not specify.

There are many, many reasons the initial disclosure could be wrong including loan amount which may be affected by the appraisal, payoff which could be higher (and usually is on a refi) than indicated on the current mortgage coupon, or a list of other factors which may even affect a home purchase – not just a refinance.

Tagged as: compliance, disclosures, fha home loans, fha loans, mdia No Comments

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