HERA & HOEPA
The new federal laws under the Housing and Economic Recovery Act (HERA) and the Home Ownership and Equity Protection Act (HOEPA) provide that, should the final APR increase more than 0.125% from the initial Truth In Lending disclosures, re-disclosure is required to be given to the buyer/borrower at least three (3) days prior to settlement. This new law comes into play with a settlement service provider like United One Resources when the title insurance company changes their fees within 3 to 5 days of the scheduled closing date. If these fees when added to all other fees, raise and exceed the threshold for percentage deviation, the closing must be rescheduled to allow the lender sufficient time to provide the borrowers with a new notice of the increased fees. To ensure there is no delay in closing as a result of changing settlement fees, we have taken affirmative steps to modify our procedures. We will now provide you with a preliminary settlement statement at the time the title binder/commitment is forwarded to you. This settlement statement will list our title fees that affect the APR calculations. By providing you with this preliminary settlement statement, you will have ample time to figure in our closing costs for your estimated TIL. If you are aware your loan will require additional endorsements that affect the APR (e.g., a variable interest rate), please let us know as soon as possible so we can adjust the preliminary settlement statement well in advance of closing. For more information on how United One Resources complies with these new regulations, please visit our website at www.united one resources.com
The new federal laws under the Housing and Economic Recovery Act (HERA) and the Home Ownership and Equity Protection Act (HOEPA) provide that, should the final APR increase more than 0.125% from the initial Truth In Lending disclosures, re-disclosure is required to be given to the buyer/borrower at least three (3) days prior to settlement.
This new law comes into play with a settlement service provider like United One Resources when the title insurance company changes their fees within 3 to 5 days of the scheduled closing date. If these fees when added to all other fees, raise and exceed the threshold for percentage deviation, the closing must be rescheduled to allow the lender sufficient time to provide the borrowers with a new notice of the increased fees.
To ensure there is no delay in closing as a result of changing settlement fees, we have taken affirmative steps to modify our procedures. We will now provide you with a preliminary settlement statement at the time the title binder/commitment is forwarded to you. This settlement statement will list our title fees that affect the APR calculations. By providing you with this preliminary settlement statement, you will have ample time to figure in our closing costs for your estimated TIL.
If you are aware your loan will require additional endorsements that affect the APR (e.g., a variable interest rate), please let us know as soon as possible so we can adjust the preliminary settlement statement well in advance of closing.
For more information on how United One Resources complies with these new regulations, please visit our website at www.united one resources.com
Posted by United One Team Member on 9/8/2009
Return to all news postings
The success of our company is tightly connected to the success of our customers and our employees. We excel at personal customer service, process innovation, and technology leadership to improve and accelerate our customers’ lending decisions.