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New Rules for Mortgage Lending
August 5, 2009 - Sylvia Heldreth
New federal rules about mortgage lending went into effect on July 30,2009. Lenders are now required to disclose all the costs associated with a mortgage within three business days of a loan application. Also, if the Annual Percentage Rate (APR) changes more than one-eighth (0.125) the lender must provide a corrected copy of the disclosure document and allow seven business days for borrowers to consider that change. The seven days begin when the document is hand delivered or placed in the mail. This means that scheduled closings may have to be postponed to allow time after the disclosure of an unexpected change in cost but consumers will no longer be faced with surprises at the closing. Postponed closings may be worth the elimination of surprising costs and fees at the last minute.
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