[Sonny]

Hey Mark! While I’m not familiar with the specifics of Mat Grella’s situation and whether it can help – this FTC ruling certainly will not hurt! Anyone that has had their options restricted by a non-compete stands to benefit.

[Sonny]

Great post, Brandon!

So happy to see that the Federal Trade Commission finally took a stand against the long-standing practice of businesses requiring exiting employees to sign a non-compete agreement in order to receive severance pay or other related compensation.

This is frequently associated with acquisitions, mergers, or other types of down-sizing. The issue that was created by the non-compete agreements, was that industry experts were prevented from continuing the activities they had spent a lifetime perfecting. While this may have been good for the business requesting the agreement, typically consumers would be negatively impacted due to the lack of competition and innovation.

Mortgage companies have used this practice for some time, especially in the most recent market down-turn with escalating interest rates. But clearly the issue (and new ruling) is much more broad than just our industry.

This is clearly a win for the
Consumer! 👍

See full article below:

https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-announces-rule-banning-noncompetes

ftc.gov

FTC Announces Rule Banning Noncompetes

Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamen

[Sonny]

Hi Dawn, the rescission period starts when the borrower receives/signs all the documents in Brandon’s first bullet point above.

In your example, if all the requirements were satisfied on April 22nd, the first day of rescission would be April 23rd. Since there are no holidays of weekends involved, the rescission window would close at midnight Thursday, April 25th. Funding likely to take place on the following day – Friday.

[Sonny]

Just wanted to add more in above post, that if you DO decide to defer your home purchase. Don’t just sit and wait for the rates to improve. Use the time to improve your credit score. A 30 point improvement in your score could result in up to a .5% decrease in your eligible interest rate (depending on all the other loan parameters).

The impact to your mortgage payment would be a decrease of over $100 per month for the life of the mortgage – estimated on a $350K loan. That’s a nice dinner each month for 30 years! 😀

If you need assistance, we have some excellent credit repair companies on this forum that would love to help you! 👍

[Sonny]

VERY informative response!! Thanks

[Sonny]

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