Summary of the new lending regulations HERA
In 2008, the Housing and Economic Recover Act (HERA) was passed by Congress and became effective July 30, 2009. The Federal Reserve Board published the new regulations under the Truth in Lending Act. These regulations are intended to provide a more transparent, level and fair regulation of the real estate industry. These changes are to the requirements surrounding early and final disclosures to homebuyers and address the timing of when fees can be charged.
Under the new regulations, the earliest a home purchase may close is 7 business days after the homebuyer is issued his or her initial mortgage disclosure from the lender. The new regulations also make it so that upfront fees (credit reporting fee excluded) cannot be collected by the lender until the initial disclosures are received. In addition to these changes, if an increase of more than 0.125% in the Annual Percentage Rate (APR) from the initial Truth in Lending Disclosure (TIL), a revised TIL must be reissued to the homebuyer. This new TIL must be received by the homebuyer at least 3 business days before closing. This is to allow the homebuyer time to determine if they are comfortable with the new rate.
These new regulations are making the typical transaction take 30-45 days to close.
Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com
Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521
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