65°F
weather icon Clear
Sponsored

New mortgage lending regulations start Oct. 3

TILA-RESPA —€” it's a term you might not yet be familiar with, but for anyone buying a home with a mortgage loan and every lender or escrow company involved — it's about to become the law of the land. Rick Piette, owner of Premier Mortgage Lending, is glad it's coming and wants consumers to know that it's a great change in lending rules that runs to their benefit.

"Commonly known as "Know Before You Owe," it refers to a portion of The Dodd-Frank Act that goes into effect on Oct. 3, 2015," Piette said. "It was designed to provide protections for consumers in mortgage loan disclosure documents that have never been available before. And it's going to give homebuyers solid information that will help them save money."

The act was created to eliminate the confusing maze of disclosure forms that consumers receive from mortgage lenders. These forms often vary from one lender to another and are written in 'legalese' terms that could be difficult to understand. Now, all these documents will be reduced to two forms that all lenders are required to use: the loan estimate and the closing disclosure.

"All the information that you really want to know about your loan will be highlighted and presented in an easy-to-understand format," Piette said. "For consumers, one of the most important benefits of these changes means that it will be easier for them to shop different lenders for costs, terms and conditions of their loan. The loan details will be clear and easy to see, and every lender's forms will be the same. It's going to give buyers the opportunity to really compare apples-to-apples. That's when they'll discover that not all mortgage loans are the same — especially when it comes to how much money comes out of their pocket."

That comparison is important, according to Piette, as it can literally mean a difference of thousands of dollars to a borrower.

"For example, Premier Mortgage Lending offers a no-fee mortgage, which means exactly what it says. So when buyers gather and compare fee worksheets from multiple lenders, they'll notice fees from other lenders that aren't found on a Premier loan. We don't charge anything for loan origination, underwriting, or document prep fees —and that's where homebuyers can save big."

Another important benefit will be that mortgage loans won't hold any surprises for a consumer, as the closing disclosure form must be provided to buyers at least seven business days before the loan closing.

"In the past, buyers would usually receive all their closing documents at the last minute — right at the escrow signing,€” which is when everyone is anxious to get the house keys and make plans to move in," Piette said. "That meant there were times that buyers would sign a set of documents without realizing some important terms of their mortgage loan had changed in a way they did not clearly understand. So the Seven-day-rule is going to give buyers the breathing room they need to make sure they're getting the loan they are expecting."

The new regulations will be put in place by the Consumer Financial Protection Bureau (cfpb.gov).

"We've been very supportive of all the new legislation the CFPB has put into effect," Piette said. "In fact, that's why we created our KnowBeforeYouOweNevada.com website. In addition to promoting the steps the CFPB is taking to ensure homebuyers are getting a fair deal on their mortgage loans, we've gone a step further on the side of consumers.

"On our site, we feature a series of short videos that help explain some of the differences between mortgage loans. We call it Home Loans 101. It's designed to make it easy to learn how to compare loans, know which questions to ask, and help you make the best financial decision for your specific homebuying situation. At Premier, we don't just talk about transparency; it's how we do business every day."

Premier Mortgage Lending, NMLS No. 393282, is at 701 N Green Valley Parkway No. 125 Henderson. The full-service lender is a member of the Las Vegas and Boulder City chambers of commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

THE LATEST
Two Las Vegas high-rise projects surpass more than $600M in sales

Las Vegas’s first two high-rise projects since before the Great Recession have surpassed more than $600 million in sales combined as construction commences at the end of the year.

High-rise sales are down; prices are up

The Las Vegas high-rise market is on track to record its fewest sales since the 2020 pandemic while setting a record for the price tag buyers are paying for their units.

HOA assessments keep increasing

You would need to review the governing documents of the association as to the percent increase the board can assess, with or without homeowner approval.

LVR presents its 2024 awards to top local Realtors

Las Vegas Realtors (LVR) presented annual awards this month to some of its leading and longtime members, with 2024 LVR President Merri Perry being honored as LVR’s Realtor of the Year.

LVR reports more homes available for sale

A recent Las Vegas Realtors report shows an increasing number of local homes available for sale, with record prices for condos and town homes as sales increased from the previous month and year.

Downtown Summerlin kicks off 2024 holiday season

Downtown Summerlin, the vibrant urban core of the master-planned community of Summerlin, kicks off the 2024 holiday season next week with the return of popular holiday activations, headlined by the arrival of Santa Claus, the return of the beloved Holiday Parade and the opening of the Rock Rink outdoor skating rink.

Unlock the good life at a Cadence home

Cadence offers quick move-in options, allowing you to transition from envisioning your new living space to truly enjoying it in no time.

Irwin Molasky’s former downtown mansion lists for $10M

The former home of the late Irwin Molasky, a prominent Las Vegas developer, has been listed for $10 million. The remodeled mansion is located at 2323 Pinto Lane in historic downtown Las Vegas.

Report shows third quarter new home sales strong

Third quarter new-home sales hit their highest level since 2021 despite a drop off in September by recording the lowest monthly sales of the year while registering its highest monthly median price in history.