Home Sellers Tip #2

New Federal Regulations Go into Effect Tomorrow
On Thursday, July 30, new federal mortgage regulations will go into effect that impact all real estate agents nationwide. These regulations include new requirements and timelines for disclosing information, collecting fees and scheduling closings.
To best serve their clients, it is critical that Sales Associates become familiar with these new regulations which include:
• No fees (except for a credit report fee) can be collected by the mortgage broker until the initial disclosures are received by the borrower. If disclosures are mailed, they are considered received three business days after mailing, allowing the fees to be collected on Day four.
• The earliest a closing date can be scheduled is the eighth business day after the initial disclosures are provided to the borrower.
• An increase or decrease of more than 0.125 percent in the Annual Percentage Rate (APR) from the initial Truth in Lending disclosure (TIL) requires that a revised TIL disclosure be issued and received by the borrower at least three business days before closing.
You can minimize the impact of these changes on your business by setting clear expectations with all parties involved in the transaction, letting them know how the settlement date can be affected by the new regulations and by working closely with your Gold Services Manager.
To download a Frequently Asked Questions document about the new regulations click here.

Real Estate Reports Point to a Housing Market Recovery
Recent findings from several industry reports all point to a housing market set for a recovery. For the first time in three years, the monthly value of homes increased according to data released yesterday in the Case-Shiller index, which tracks home values in 20 cities throughout the United States.
On Monday, it was reported that new home sales jumped 11 percent, the largest increase in more than eight years. Late last week, the National Association of Realtors announced that existing home sales rose 3.6 percent, marking the third consecutive month of increased sales.