DaveMully.com Mortgage Blog

Let me be the first to tell you (If you have not heard already), new Fannie & Freddie changes effective immediately. 

The mortgage process will be extended approx. 2 weeks (in most cases), due to the below 2 new changes designed to protect consumers: 

One:  We now cannot order an appraisal until 5 to 7 days after mortgage application. This alone adds a week to processing a mortgage. 

Two:  When a mortgage is ready to close, if there were any changes in rate, loan amount, fee’s etc. the TIL has to be re-disclosed to the borrower. This process adds another week before a mortgage can close. 

Without getting to technical, the above are the basics & will in most cases add 2 weeks to the process. Of course the changes are meant to help consumers from unethical lenders which we all applaud, but in reality it also will cost the consumer more money. 

We will have to lock rates for longer periods which cost the borrower (longer rate locks cost more). Also, in many cases longer mortgage process means added cost & may even cause purchase transactions problems with timing issues etc.. 

This impacts Purchases as well as Refinances. 

If you care for more specific details please do not hesitate to contact me. EDUCATE YOUR CLIENTS ON THIS SO THEY KNOW UPFRONT. 

Thanks--Dave 

David C. Mully

Senior Loan Officer

Midtown Financial Services

120 W. Main Street, Suite #206

Northville, MI 48167

Office: 248.465.6000 ext. 24

Cell: 248.767.1950 

eFax: 815.550.1656 

Email: dave@midtownfinancial.com

Website: www.davemully.com  

Serving Homeowners since 1988