Real Estate Law
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Hello and thank you for your question. Is this a government funded loan?
This is not a VA or FHA loan, straight conventional financing. Loan amount is $352,000. We are just concerned that we do not violate RESPA by not providing the proper dosclosure timelines. That being said the byer and more importantly in this case the seller are ready to close this Friday (in 3 days).
this is not a VA or FHA loan, straight conventional financing. Loan amount is $352,000. We are just concerned that we do not violate RESPA by not providing the proper disclosure timelines. That being said the buyer and more importantly in this case the seller are ready to close this Friday (in 3 days).
The anti-steering documents in the initial disclosures do not address occupancy only rate and cost adjustments. Given that the rate is dropping saving each month, and the costs are dropping I am not sure the anti-steering documents would play a roll here. And yes all parties want to close this Friday. The only place occupancy is mentioned is on the first and fourth of the application (form 1003).
Still waiting for a resolution to the question asked from last night. Please see above.
Hi - my name is XXXXX XXXXX I'm a Real Estate litigation attorney. Thanks for your question.
Changed circumstances are defined as:
This could likely be considered as a changed circumstance because you're using the client's mother - - which you weren't before - - to give you a better rate and no points.
Here's a very good link about the RESPA regulations and new changes: http://www.consumerfinance.gov/guidance/supervision/manual/respa-narrative/
The regulations do require a new GFE if the interest rates change, which shows the revised interest rate dependent charges and terms. All other charges and terms must remain the same as on the original GFE, unless changed circumstances or borrower-requested changes result in increased
costs for settlement services or affect the borrower’s eligibility for the specific loan terms identified inthe original GFE.
I think that best thing to do is have the borrowwer sign an new good faith estimate and RESPA BECAUSE the interest rate and points have changed - - even though it is for the best.
There is so much scrutiny and so many lawsuits that come out of lenders swapping things up too fast that it's not worth the risk. In this case, I could forsee that the borrower would say that he/she never knew that mom was going to claim residency, etc.
Even though it will cost you some time, it's worth it.
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