Posted by mwm143 on 7/31/09 10:36am
Msg #298234

New Respa Rules

There was mention the other day in a post that the new RESPA rules would, in effect, eliminate scheduling last minute closings by the loan officers. Could someone elaborate on that?

Reply by Keystone_SA on 7/31/09 11:18am
Msg #298244

http://www.federalreserve.gov/newsevents/press/bcreg/20090723a.htm

Try to cut and paste this link. It may help you understand that basically lenders are going to have to provide the pre-disclosures to the borrowers ACTUALLY pre-closing. Hmmmmmmmmmmm... that's something new.

Reply by PAW on 7/31/09 11:38am
Msg #298250

I seriously doubt it will do much to improve on scheduling closings. It has always been the last possible minute. Email/edocs just allowed for a later last minute. Preclosing disclosures should make the closing easier; shouldn't have as many surprises in the package, but I don't think getting the docs any sooner is going to improve. (I hope I'm wrong.)

Reply by Keystone_SA on 7/31/09 11:44am
Msg #298251

"not as many surprises in the package".

That would definitely be a welcome relief. I took an edoc closing yesterday and the package itself was over 100 pages, then the title docs another 20 and then the pre-disclosures another 40. It would have been nice if the pre-disclosures were already with the borrower. would have saved me time and money. I despise being at a closing when a borrower is line by line going over the GFE (that they just layed their eyes on for the first time) and seeing if it identically matches the HUD. I always explain it is a "Good Faith Estimate" of closing costs, not the final HUD.

Reply by Shoshana Roller on 8/1/09 3:17pm
Msg #298360

For one thing, it is going to lengthen the loan process. The appraisal cannot be ordered until the borrower receives the lender's disclosures which will arrive by email or snail mail within 3 days (longer for snail mail) after the broker's disclosures.

I think there will still be a lot of predisclosures in the final package because only the RESPA docs are required to be in the preliminary disclosure package.