New Rules in Mortgage Underwriting for Buyers of Las Vegas Homes
There have been many major changes in the
real estate and mortgage industry lately that might affect buyers and sellers
of Las Vegas Homes
alike. During the
last few months, many transactions nationwide have experienced delayed closings
or worse resulting from the implementation of new guidelines affecting APR,
Good Faith Estimate (GFE), Truth in Lending (TILA) and condo project approvals.
Another issue that real estate agents, loan officers, and anyone else who deals with
consumers purchasing a home or obtaining a refinance must deal with is that
since June 1, 2010, Fannie Mae has issued new lender regulations on a
national basis that, if not understood properly, could have devastating
consequences for many buyers and sellers of Las Vegas Homes.
This initiative aims to make
sure that all applicant information is disclosed, honest, and accurate at the
time that the deal closes. Lenders will now be required to review credit report
information just before closing, re-verify employment, validate Social Security
numbers, verify the intent to occupy, and make sure that all the parties
involved in the transaction have been checked against the national “excluded
party” list managed by the HUD and
General Services Administrator. Any changes in these factors will likely result
to a re-underwrite, need for additional documentations, or suspension of loan
closing.
The most troublesome among these new
regulations is credit re-pull. It is vital that this is done discreetly so that
it will not look like an inquiry, which could potentially change the borrower’s
credit score. Additional delinquencies will result in a full credit re-pull and
a re-underwriting utilizing the new credit.
Real estate agents and lenders
must impress upon the applicants the need for full and honest disclosure at the
time of application, during the loan process and at closing. Be aware that an applicant that
signs an erroneous initial or final closing application could be committing
fraud. Lenders choosing to approve loans without the proper loan quality
processes and documentation are only endangering the buyer. So, be sure to check and double check everything first
before finalizing your deals for Las Vegas Homes.