Valley Vista Blog

New RESPA (Real Estate Settlement Procedures Act) laws went into effect in the beginning of January and will be phased in over the next couple months.  One of the reform items is a new good faith estimate form that contains easier to understand information regarding the loan.  The news laws also create more paperwork and additional disclosures which generally benefit the borrower but do lead to longer times required to close loans which also leads to longer locks needed or additional time "floating" loans, which have a negative impact to the borrower.  Banks increasing seem like they don't want to loan money and have come up with numerous requirements that bog down approving and closing loans.  Even great borrowers have difficulty getting loans due sometimes to seemingly negligible details, these can be overcome but delay the process. It is frustrating for us because good borrowers cannot get a loan to purchase a home or refinance when only a year ago they could.  The other problem many people have run into is the appraisal process.  Hopefully the newly enacted HVCC (Home Valuation Code of Conduct), will go away soon because it has impacted the borrowers mostly with out of town appraisers appraising properties often at a severely lower value.  This leads to having to get multiple appraisals and can cost considerable amount of money.  There is discussion on Capitol hill that they may revamp the appraisal law when the new consumer finance bill gets written or enacted. And finally there will be a licence required or and endorsement on a real estate license required to conduct mortgage broker activities.  This is long overdue and will help weed out inexperienced and uneducated mortgage loan professionals. 

Bottom line is that the residential financing business is getting more complex and time consuming and it's ever more important to chose a loan professional who can navigate this mess and close your loan whether its a refinance or purchase.

Nate Kucera