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New Load Disclosure May Delay Escrow Closing

Starting July 30, if the APR on an initial Good Faith Estimate is no longer accurate (within a 0.125 percent range) at close of escrow, a lender must generally provide a residential borrower with a new disclosure and a three-day right to rescind before consummating the loan. Because of this new three-day waiting period, a lender’s failure to timely provide corrected disclosures has the potential of delaying funding of the loan and close of escrow. This new requirement is part of the Mortgage Disclosure Improvement Act (MDIA) implementing new loan procedures to protect borrowers and foster greater transparency in mortgage lending.

Written by Keith Byrd - Go to Keith's Website/Profile