Beginning 8/1/2009 the Federal Mortgage Disclosure Improvement Act (MDIA) goes into effect and applies to all mortgage loan applications dated 8/1/2009 and beyond.
Basically, purchase borrowers will now have the same protection as refinance borrowers creating a 3 day period to understand exactly what is expected at settlement regarding closing costs.
Changes from the initial Good Faith Estimate of Settlement Costs to the final HUD 1 regarding the following items must be redisclosed no less than 3 days prior to settlement:
* Origination and discount points
* Appraisal and reinspection fees
* Credit report fees
* Flood Certification fees
* Tax service fees
* Commitment fees
* Processing fees
* Underwriting fees
* Transfer and Recordation fees
* Realtor Admin. Fees
The Federal Government is making sure borrowers cannot get "jammed at settlement" with new fees and forced to close. Borrowers now have 3 days to understand any fee changes before settlement. This is a good move since it levels the playing field and gets rid of unethical practices by unscrupulous lenders.
It is very important you work with your lenders and supply them with all the information regarding any and all Admin fees that will be charged at settlement so no one gets left short at the table.
Changes from the initial Good Faith Estimate of Settlement Costs to the final HUD 1 regarding the following items must be redisclosed no less than 3 days prior to settlement:
* Origination and discount points
* Appraisal and reinspection fees
* Credit report fees
* Flood Certification fees
* Tax service fees
* Commitment fees
* Processing fees
* Underwriting fees
* Transfer and Recordation fees
* Realtor Admin. Fees
The Federal Government is making sure borrowers cannot get "jammed at settlement" with new fees and forced to close. Borrowers now have 3 days to understand any fee changes before settlement. This is a good move since it levels the playing field and gets rid of unethical practices by unscrupulous lenders.
It is very important you work with your lenders and supply them with all the information regarding any and all Admin fees that will be charged at settlement so no one gets left short at the table.
This information was provided by my friends at MPOINT Mortgage:
Thank you!
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