[Gustan Cho]

In the mortgage process, the three-day waiting period is an important regulatory requirement designed to give borrowers sufficient time to review their loan terms before finalizing the transaction. This waiting period is mandated by the Truth in Lending Act (TILA) as amended by the Real Estate Settlement Procedures Act (RESPA) under the TILA-RESPA Integrated Disclosure (TRID) rules. Here’s how it works:

1. Purpose of the Waiting Period

The primary purpose of the three-day waiting period is to ensure that consumers have a chance to understand their mortgage terms fully, thereby making informed decisions. It gives borrowers time to review the Closing Disclosure, which outlines the costs, fees, and other critical terms of their mortgage.

2. Timing of the Disclosure

The Closing Disclosure must be given to the borrowers at least three business days before they close on the mortgage loan. This period allows them to review the final terms and costs and to compare them with the initial Loan Estimate they received when they applied for the loan.

3. Starting the Three-Day Period

The three-day period begins the day after all parties have received the Closing Disclosure. Business days include all calendar days except Sundays and the federal public holidays.

4. Right to Review

During the three-day waiting period, borrowers have the right to ask questions and seek clarification about their loan terms. They can also identify any discrepancies in the Closing Disclosure compared to the initial Loan Estimate and address these issues with their lender.

5. What Triggers a New Three-Day Period

Certain significant changes to the loan terms after the initial Closing Disclosure has been issued can reset the three-day period. These changes include:

• A change in the APR (annual percentage rate) beyond a specified tolerance level.
• A change in the loan product (for example, switching from a fixed-rate to an adjustable-rate loan).
• The addition of a prepayment penalty to the loan.

If any of these changes occur, the lender must provide a new Closing Disclosure and restart the three-day waiting period.

6. Waiving the Waiting Period

Under certain circumstances, such as a documented personal financial emergency, borrowers can request to waive the three-day waiting period. To do this, they must provide a written statement to the lender that describes the emergency, specifically waives the waiting period, and bears the signatures of all borrowers who are primarily liable on the loan.

Conclusion

The three-day waiting period is a critical consumer protection mechanism in the mortgage process, intended to prevent surprises at closing and ensure borrowers are comfortable with their loan agreement before proceeding. It emphasizes transparency and encourages borrowers to thoroughly review and understand their financial commitments.

https://www.youtube.com/watch?v=9KYRWpmxV8E

[Gustan Cho]

Here are the states that require brick and mortar and have distance requirements between mortgage branch and personal residency:

1. New Jersey

2. Wisconsin

3. Oklahoma

4. Louisiana

5. Wyoming

6. Rhode Island

7. West Virginia

8. Mississippi

9. South Carolina

The above states have a 50 mile to 100 mile distance requirement for loan officers between personal residence and the mortgage branch office they are tied to.

[Gustan Cho]

The requirements for mortgage loan officers, including any distance requirements from a residence to a branch, are governed by state-specific regulations under the Nationwide Multistate Licensing System (NMLS). However, the common regulation pertains to the physical office requirement rather than the distance of an officer’s residence from a branch.

Key Points on NMLS Licensing Requirements:

1. Physical Office Requirements: Some states require that mortgage companies maintain a physical office within the state as a condition for licensing. This requirement is not universally applied to individual mortgage loan officers (MLOs) in terms of their residence but does apply to the business operations of the mortgage lender or broker for whom they work.

2. No Specific Distance Requirements: Typically, there are no specific distance requirements regarding how far an MLO’s residence must be from the branch or office where they work. Most regulations focus on the presence and availability of the MLO to serve clients and manage loans effectively, regardless of where they live relative to the office.

3. Remote Work Flexibility: The increasing acceptance of remote work within the financial services industry, particularly highlighted during the COVID-19 pandemic, has led many states to reconsider or clarify rules around physical office requirements. This flexibility often extends to MLOs, who may not need to be physically present in an office daily.

4. State-Specific Licensing Requirements: It is crucial to understand that each state may have unique requirements and conditions under its mortgage licensing laws. These can include background checks, education requirements, examination scores, and surety bond requirements, but typically do not include how far an MLO lives from their office.

5. MLO Sponsorship: Mortgage loan officers must be sponsored by a licensed entity (broker or lender) that holds a physical office, which is a more common requirement than any stipulation about the MLO’s residence.

If you are considering becoming a mortgage loan officer or starting a mortgage-related business in a specific state, it’s essential to consult that state’s financial regulatory body or a legal expert specializing in financial regulations to understand all applicable requirements. This approach ensures compliance and helps clarify any specifics related to office location and operational mandates.

[Gustan Cho]

@marga is in charge of all equipment financing loans with @dannyves Danny Vesokie of Affiliated Financial Partners based in Sacramento California.

[Gustan Cho]

Thank you for sharing Sonny. Informative article and benefits our members 👍

[Gustan Cho]

New home prices nationwide are dropping an average of 19% and inventory of homes are raking up since 2022 all time highs. Homebuilders from Lennar Homes, DR HORTON, PULTE GROUP, NVR, TAYLOR MORRISON, KB HOME, MERITAGE HOMES CORP, CLAYTON PROPERTIES GROUP, BARRETT DEVELOPMENTS, and others are all seeing lower home sales and cutting home prices and offering incentives such as huge incentives and mortgage rate buy downs steering to their preferred Mortgage Lenders.

https://youtu.be/1MKcslJWhmU?si=ITKzoKaLj-_CMxTj

[Gustan Cho]

From my understanding it is a builder and does not quite have permits yet. I told Sonny we can possibly do a TBD and get the ball rolling. On another note do we have an investor for mobile home parks and RV parks for @RPE

[Gustan Cho]

@Wendy GM Lahn, Esq., MBA, LL.M. So, I am licensed in 48 states and not licensed in New York and Massachusetts at NEXA Mortgage. So you mean to tell me that I can get sponsored by another mortgage company for Massachusetts and New York and be licensed and sponsored in 48 states with NEXA Mortgage. Therefore, I have two sponsoring mortgage companies with NMLS? @Tatiana is a fellow loan officer at NEXA Mortgage but has a major hurdle because Massachusetts is her home state and she is waiting for NEXA to get licensed in Massachusetts and New York. She loves NEXA but is handcuffed because all of her contacts is in Massachusetts and New York.

[Gustan Cho]

John, meet @CAM-THE-MAN Cameron LeClair the Man who is anyone who you want him to be. Wholesale mortgage king, helping the unemployed, imitation mortgage underwriter, a man that does everything backwards. Has a baby and then gets married. We all love the crazy man Cameron