Closing Delays?

We have a new requirement that is part of the Mortgage Disclosure Improvement Act (MDIA). This implements new loan procedures to protect borrowers and foster greater transparency in mortgage lending.  For loan applications submitted Starting July 30, 2009

  •  If the APR quoted on an initial Good Faith Estimate is no longer accurate (within a 0.125% range) at close of escrow, a lender must generally provide a residential borrower with a new disclosure
  • If a new disclousre is generated it also begins a  new three-day recission period and borrowers have a right to rescind before consummating the loan. 

Be aware that if you are in escrow and anticipating a predetermined close day there could be an additional three days added to your closing date due to this additional waiting period.  A lender’s failure to timely provide corrected disclosures has the potential of delaying funding of the loan and close of escrow. 

It is best to read your Good Faith Estimate very closely and remember that interest rates are always changing and your loan is susceptible to these fluxes until your loan is locked. 

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