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How the new government laws and investor requirements may impact closing dates The mortgage industry is certainly undergoing many changes to help provide consumers better information when it comes to financing a home. We're providing this document to help you understand some of the new laws and investor requirements that are taking effect-especially those that impact timelines. HERA-MDIA and HVCC—background information In 2008, amendments to the HomeOwnership and Equity Protection Act (HOEPA) and the Housing and Economic Recovery Act (HERA) were passed by Congress, and the Federal Reserve Board published the regulations under the Truth in Lending Act. These laws were written to provide amore transparent, level and fair regulation of the real estate industry; to add additional steps to help prevent deceptive lending practices; and to protect consumers by making them more informed— and therefore more confident—in their home financing choices. In addition, FannieMae and FreddieMac adopted the HomeValuation Code of Conduct (HVCC) in 2008 to reinforce appraiser independence, valuation protections, and enhance the overall integrity of the valuation process. HVCC: Effective May 1, 2009 Promotes the accuracy of appraisals by shielding appraisers from undue influence, and ensuring that consumers have sufficient notice of appraisal content by requiring that consumers receive a copy of their appraisal reports no less than 3 days prior to the closing of their loan absent a consumer waiver of this requirement. HERA / MDIA: Effective July 30, 2009 Amends the Truth in Lending Act (TILA), implemented through Regulation Z. Has a number of provisions including the Mortgage Disclosure Improvement Act, which changes the Truth in Lending Act requirements surrounding early and final disclosures to consumers and addresses the timing of when fees can be charged.
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