As you may know, beginning July 30th the Federal Reserve has made changes to the Regulation Z form for mortgage lending (also known as the truth in lending disclosure or TIL).  Here is a summary of what to expect:

• At loan application, a truth in lending disclosure will be provided to your borrower within 3 business days. This is standard procedure and will not change.
• Once the loan is approved and all conditions are cleared by the underwriter, a final truth in lending disclosure will be delivered to your buyer. There are two forms of acceptable delivery - "In Person" or "Mailed."
• If the final TIL is delivered In Person, a 3-day waiting period begins BEFORE THE LOAN CAN CLOSE.   Example - all conditions are cleared and the final TIL is delivered in person on Monday July 20th, 2009. The loan CANNOT CLOSE until Friday July 24th.  We as a bank will, for now, deliver the final TIL in person via e-mail with instructions from your buyer to sign and return the cover letter that accompanies the document the same day as they receive it. They can also drive it over to my branch or if need be, I will pick it up from them. But it must be dated the same date as when I deliver it.
• If the final TIL is delivered by mail, a 3-day waiting period kicks in to presume the delivery has been made, PLUS THE ADDITIONAL 3-DAY WAITING PERIOD for a total of six days until the loan can close. Example - all conditions are cleared and the final TIL is mailed on Monday July 20th, 2009. Keeping in mind that Sundays and Holidays are not counted as part of the business days, the loan cannot close until Tuesday July 28th, 2009. This will affect you if your buyer lives out of state because that's most likely how we will need to deliver it.

What does this all mean to you when you're trying to close the deal? It means no more moving the closing date up because the seller is out of town, buyer is out of town, someone has to be somewhere, etc. It can't be done because by law, we simply must abide by this 3-day waiting period. Also know that if any changes occur within that 3-day period and a new final TIL has to be delivered to your customer, that 3-day clock starts ALL OVER!  Be very realistic in setting your closing dates and don't expect rush jobs anymore.

There's lots her to absorb. Please call with any questions.

MICHAEL DUNN, COLDWELL BANKER LEGACY REALTORS.

(505) 379-5849 AbqDunn@gmail.com

(This info was provided to me by Roger Gettler of 1st Community Mortgage)