HERA regulations going into effect July 30th

The Housing and Economic Recovery Act (HERA) regulations are going into effect at the end of the month. Congress has designed these regulations to prevent deceptive lending practices with home mortgages. The key things to know are:

- The final truth in lending must be provided to the borrow 3 days prior to closing
- If the APR increases by more than .125 from the APR originally quoted, there is a 3 day waiting period
- The original truth in lending disclosures must be made at least 7 days before closing
- Borrowers must be presented with the appraisal on the property they are purchasing 3 days prior to closing (may be waived)

Congress has recognized that the lending side of the real estate industry has had the largest hand in putting us where we are today. This legislation is great in theory; unfortunately I foresee it slowing down transactions much more than the HVCC. As always, please contact me with questions—I’m happy to help.