Zillow Blog Entry #2… What the MDIA Means to Consumers

I published my second blog entry on Zillow Mortgages Unzipped.  In this entry, I covered what the new Mortgage Disclosure Act changes can affect consumers.  Here is an excerpt:

The MDIA (Mortgage Disclosure Improvement Act) is a brand-new regulation that is on the minds of all mortgage professionals, but what does it mean to consumers?

Below are the four main changes:
 
Collection of Fees: The only fee that can be charged to the borrower prior to the loan application is a credit report fee. This fee must be reasonable, which is usually between $12-35 dollars depending on the company and whether the report is for a single borrower or joint.
New Business Day Definition: Saturdays are now included as business days on all regulations.  If you see any paperwork that discusses timelines for a mortgage, Saturdays are included.  Sundays and federal holidays are excluded.
Timing of Disclosure: the law has always required disclosures within 3 days of the application.  The new added regulation is that the client cannot close within 7 days of the application.  This gives the client time to review the loan terms offered to them
APR (Annual Percentage Rate) Change: If the APR increases by more than .125% since the last disclosure, the borrower must be re-disclosed and cannot close for 3 days from last disclosure.

Here is a link to the rest of the article

Related posts:

1. What Do Real Estate Agents need to know about the MDIA (Mortgage Disclosure Improvement Act)?
2. First Zillow blog post is up
3. Zillow…helping make the real estate world smaller
4. Zillow not just for buyers and home owners