Reminder - New Mortgage Disclosure Improvement Act (MDIA) Effective July 30, 2009
Posted Jul 14, 2009 @ 7:11 pm, Viewed by 1546 Visitors, Read 1665 Times.We just wanted to give you all a reminder that beginning July 30, the Federal Reserve Board's new Mortgage Disclosure Improvement Act (MDIA) goes into effect. The rule will not only change the way the Truth In Lending Act (TILA) is disclosed to consumers, it may also lengthen the time it takes to get your clients home loans closed.
Highlights of MIDA's new requirements include the following:
- TILA disclosures apply to any closed-end extension of credit secured by the dwelling of a consumer including non-principal dwellings (second homes).
- There must be a seven-day waiting period between the date the initial TIL disclosure is provided to the consumer and disbursement of the loan.
- Any change to the initial APR disclosed in the original TIL that exceeds 1/8% (.125) for a regular transaction or 1/4% (.25) for an irregular transaction will require a new TIL disclosure with an additional three-day waiting period between its receipt by the consumer and disbursement of the loan.
- The waiting periods will not include Sundays or any nationally recognized federal holidays.
- No fees, other than a bona fide credit report fee can be charged prior to the initial TIL disclosure being provided to the consumer.
The bottom line is that any last minute changes in the client's loan process, like changing loan programs, getting hit with undisclosed title company or attorney loan closing charges, or changes to the original odd days of interest calculations may just postpone your scheduled closing date.
Metro Mortgage Company is a federally regulated Mortgage Banker specializing in residential Florida home loans including Conventional, Jumbo and FHA/VA mortgages. Visit our home loan approval process page for more information or call us today at 888-617-3674.
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Social Bookmarking2 Responses to “Reminder - New Mortgage Disclosure Improvement Act (MDIA) Effective July 30, 2009”
Well Robert, you can obviously use the net. Places like the mbaa.org and nationalmortgagenews.com might be a good place to start. However, the best advice IMHO would be to find a good local lender and try to use them for answering your questions. Talk to some of your peers in the industry and you should be able to find someone pretty easily.
Once you have initiated contact, a good lender will usually help with any questions you may have.
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Gulf Coast Associates is a private real estate firm specializing in SW Florida Real Estate. Benjamin Dona is the Broker-Owner. He and his wife Terry, an underwriter with 20 years experience, also own a federally-regulated mortgage banking firm, Metro Mortgage Company.
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Thanks for the lending update. Where can I best learn more about mortgage loans to understand more?