Mortgage Application and Settlement Changes

The new realestate mortgage application and settlement procedures adopted by the Housing and Urban Development(HUD)Department, effective January 1st, will probably take a little getting used to. These changes, there are about 33o pages in the new regulation, are the first major changes since 1974. Everyone, including buyers, mortgage loan origination officers, and settlement attorneys will be busy adjusting to the new ways of doing things, and, at least initially, it will probably take a little longer to get from the point of contract to the closing. The intent of the new regulations is to improve accuracy and disclosure with regard to all residential loans. As I understand the new rules, the settlement "numbers" are supposed to be known three days before closing and are not to change in that timeframe. If they do, then the necessary changes are made and the clock is restarted. So, everyone has got to pay close attention to the process and whenever there is a requirement to provide information into it that person needs to be sure of the informations accuracy.