* Creditors, Mortgage brokers, and any other person are prohibited from imposing any fee other then a reasonable credit report fee until the consumer has received the lenders initial disclosures.
* The loan cannot close (i.e. document signing) until seven (7) business days after the initial TIL disclosure has been mailed.
* The loan cannot close until three (3) business days after re-disclosure TIL is received (when applicable).

If the disclosure are delivered via regular mail, the disclosures are considered received by the borrower three (3) business days after they are mailed. When disclosures are delivered electronically, consistent with the E-Sign Act, the creditor may rely on evidence of actual delivery to determine when the three-business (3) day period begins. Accordingly, lenders are adapting disclosure processing to support electronic communication of the Truth in Lending. Electronic delivery of the disclosures allow for a more streamline process and provides an opportunity for better customer service.

The Annual Percentage Rate Change Provision

If the APR increases by more then 0.125% on Fixed rate loans or .250% on ARMS from the previously disclosed APR, a re-disclosure TIL must be provided to the customer. The loan cannot close (document signing ) until Three (3) business days after the re-disclosure TIL is received by the borrower.

Appraisal FEE Collection

A consumer (applicant) credit card authorization after the lenders TIL has been received.

Penalties if out of Compliance

If the previous procedures are not followed the following will take place. The loan will be canceled with the lender and appraisal will become void and the process will have to start over with a new lender. Brokers will be fined $4,000.00 and the lender will be fined .20 of the loan amount if audit shows it was out of compliance. John Le Francois