Fed Mortgage Disclosure Changes

While the end of summer brings the height of hurricane season it also brings to an end to higher New Orleans home mortgage rates. The Queen city continues to follow the national trend in seeing an increase in mortgage rates between the months of May and August. This season we have experiences an increase of the rate of about .75%. The fear of inflation is what usually derives this rate increase and this year seems to be no different. But with summer coming to a close and the US economy in unchartered economic territory the relaxation of the fear of inflation may not be a given this time around. That wouldn’t be good news for The New Orleans home mortgage shopper.

Meanwhile porn actress Stormy Daniels is looking into running against David Vitter in the next senatorial election. It makes for great entertainment and adds to the allure of the city. But judging from what has been coming out of DC lately it doesn’t look like much of an advancement opportunity for Ms. Stormy so my gut is telling me she’s going to be a no show and what we have now is publicity ops. But what do I know.

Back to New Orleans home mortgage issues.

As of July 31, some new disclosure requirements took effect. What follows is a summary of the changes as they affect New Orleans home mortgages

• Now mortgage loans secured by any dwelling, not just your primary residence fall under Regulation Z disclosures. Refinancing and home equity loans are now covered under early disclosures.
• Early disclosures must be mailed or delivered within 3 business days of receipt of the loan application. Saturday is considered a business day, Sunday and federal holidays are not. There is also a 7 business day waiting period after delivery of the disclosures before closing.
• If the disclosure APR changes beyond .125% a corrected disclosure must be delivered a least 3 business days prior to closing
• Lenders are prohibited from charging a consumer any fee, except a credit report fee, until after the early disclosures have been provided.
• A consumer can waive some disclosures to expedite the closing to address a personal financial emergency, such as foreclosure.
• Lenders are required to tell consumers that they are not required to complete the transaction because the consumer has received the disclosures or applied for a loan.

Hope everyone has a great summer and look forward to keeping you informed on all the issues that affect New Orleans home mortgages.