TILA is the Truth In Lending Act also known as Regulation Z. A new requirement added for Arizona as well as the rest of the nation for lenders to provide another disclosure. The new requirements apply to all mortgages including primary and secondary homes. Investor loans are exempt.
Lenders must give good faith estimates of mortgage loan costs within 3 business days after the consumer applies for a loan (early disclosure). The lender may not collect any fees before the disclosure is provided except for a credit report fee.
THE CLOSING MAY NOT TAKE PLACE UNTIL THE EXPIRATION OF A 7 DAY WAITING PERIOD AFTER THE CONSUMER RECEIVES THE EARLY DISCLOSURE!
Under strict circumstances this period may be waived by the consumer. It may NOT be a standard of practice for the lender to ask the consumer to waive this waiting period.
If the APR changes by more than 0.125 percent the lender must provide a corrected disclosure and wait an additional 3 BUSINESS days before closing the loan. The APR includes the interest rate and other costs related to the settlement of the loan.
Please contact Andrew or Marie for a lender referral if you are looking to purchase or refinance your home in Arizona! The source of this information is the arizona association of REALTORS.
