Mortgage Professional America forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Head to Head: Are the new disclosure rules a positive step for the industry?

Notify me of new replies via email
Mortgage Professional America | 25 Feb 2015, 08:00 AM Agree 0
The new integrated disclosure rule set to take effect in August will combine some disclosures consumers receive when applying for a mortgage. We asked mortgage pros how they think the new rules will affect business.
  • broker Mark from Dallas | | 25 Feb 2015, 10:03 AM Agree 0
    movers; 1 day $400
    movers told to reschedule because of delays; 3 days paying movers that didn't move $1200
    rescheduling all 6 services i.e. electric; rescheduling trip fee's etc $350
    lock extension fee; $600

    insert name of us politician here_______as the borrower....Priceless
  • A concerned mortgage professional. | | 25 Feb 2015, 10:24 AM Agree 0
    As a mortgage broker and owner of my company for the last 32 years I have seen many good changes come and I have seen my share of changes that do not help the borrower. This new 3 day rule is not going to benefit our customers. It is going to cause hardship. On many purchases there are usually several homeowners in line to close. If you have done everything correctly from the beginning and know all of your ducks are in a row unfortunately you now are going to have to disclose to your customer they can line up taking off from work, hire the movers, change the utilities, etc. for their closing, BUT if there are other closings involved you are not going to be able to guarantee the disclosures make in this succession of closings all were done correctly. The mortgage brokers in our industry are now well informed, educated and the "bad eggs" have exited our industry due to the oversight that has been put into place. I can't image anyone in this business not doing a full disclosure at the beginning of the application process. Type of mortgage, terms, rate, payments, APR, closing fees are disclosed in a manner the customer is fully aware. You are now taking away what we do for a living and saying "we can't trust these educated mortgage people to tell the truth,we will have to give this duty to the settlement agency". We want to make sure the settlement agency can get this right so let's give them 3 days to do this. REALLY. Don't you think regulations are going a little to far in this capacity. If you want a new form then fine, but quit delaying the process of getting a mortgage closed. Put some trust in all of those in our industry who have done everything you have come up with since Frank and Dodd wrote the new legislation.
  • | | 25 Feb 2015, 10:30 AM Agree 0
    I do a lot of short sales and I normally have to have the final HUD to the investor for their approval 72 hours in advance of closing. Where I run into problems is when the lender on the new mortgage can't seem to get the docs to escrow until the final days before closing. More times than not, it doesn't seem to matter if the closing is set at 30 days, 45 days or 60 days. Those docs don't show up until the last second, with me in the background begging, extensions being sought and now and then deals cancelled if I can't get the investor to give me more time. I start warning the mortgage officer from day 1 not to wait until the last second and what chaos it can cause, especially if there is even a minor change at the end of the deal. I have the same problems with non-short sale deals which results in movers being rescheduled, buyers and sellers wasting vacation days taken to move or staying in hotels or with friends waiting for the delayed closing when they've had to vacate their home. As a listing agent, hopefully this rule will encourage timely processing although realistically I can see more nightmares on the horizon.
Post a reply