Tag Archives: new mortgage rules

Dodd-Frank reform could make it easier to get a mortgage

It should be easier for you to get a mortgage if President Donald Trump signs legislation that will lift lending restrictions on community banks.

Congress on Tuesday voted in favor of rolling back Dodd-Frank banking rules. The reforms would ease some of the mortgage laws from the Dodd-Frank Act of 2010, a massive financial law enacted in response to the financial crisis.

The new changes will allow community banks and credit unions to offer mortgages outside the typical Qualified Mortgage rule so long as they don’t sell that mortgage but keep it in-house. By holding that mortgage on the books, it would be deemed a Qualified Mortgage. The carve-out would apply to institutions with less than $10 billion in assets.

Many lenders think this change would allow more community lenders to offer mortgages. It would also be helpful for homebuyers, when mortgage rates are rising but still low.

It’s unclear how much of an impact a change to the mortgage laws would have on the housing market. A large portion of homebuyers already meet the requirements within the Qualified Mortgage rule. The Urban Institute says the Qualified Mortgage rule has had “little impact” on credit availability, though there are fewer mortgages being offered for under $100,000.

read more at: https://www.bankrate.com/mortgages/dodd-frank-reform-easier-to-get-mortgage/

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New Rules for Mortgages start October 3; longer doc review time

Regulations mandate longer document review times starting Oct. 3

Could home sale closings get delayed in the coming months, even more than they are now? Bankers, real estate agents and title insurers think they might. They are worried that the new federally mandated mortgage and real estate disclosure procedures scheduled to take effect nationwide Oct. 3 will lengthen the typical time span from sales contract signing to settlement.

The new rules, which mandate longer document review times for buyers and impose an entirely new set of disclosures in place of the traditional Truth in Lending, Good Faith Estimates and HUD1 settlement forms, are likely to take awhile for mortgage and closing service providers to get accustomed to using.

Some industry experts warn that today’s 30-day to 40-day turnaround times could extend to 45 days or longer, depending on the number of complications that arise during the process.

But then again, complications in real estate transactions are nothing new. Talk to any experienced realty agent and ask about issues that lead to delays — or total derailments — and you’re likely to get an earful. The sobering fact is that even without the new closing rules coming in October, nearly two of every five of all home sale transactions don’t proceed to closing on time or as planned.

Most buyers and sellers are unaware of the statistical probabilities, but a surprisingly large percentage of sales involve problems that push closing times beyond what was originally agreed to by the sellers and buyers. About one out of 14 deals actually implodes after the sales contract signing— they don’t make it to or through the closing at all.

read more at: http://sandiegouniontribune.ca.newsmemory.com/publink.php?shareid=3d9daa522&pSetup=sandiegouniontribune

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