Is your Management Company prepared to provide this Additional Loan Estimate Disclosure? Can you provide the information within the required 3 day timeframe?
In response to the 2007 mortgage crisis new federal regulations recently took effect. In an attempt to address issues regarding confusing loan estimates and unqualified purchasers, mortgage lenders will be required to deliver written disclosures to prospective purchasers. These will have to be provided to the consumer within three business days from completion of a loan application. The regulations allow for something called a “best information standard” which means the mortgage lender does not have to guarantee the accuracy of the amounts as they do with a typical loan disclosure document. This standard is important when considering the possible difficulty in obtaining the current figures quickly from a Management Company or a self-managed association.
Make additional money off this new regulation and make your buyers happy at the same time. It’s a WIN, WIN. WIN for all the parties involved.
Michael Rome, Esq., Rome & Associates, PC