BIG changes last week

Something called the MDIA went into effect last week and it is likely to cause further heartburn for buyers and sellers. Basically the GFE can't change the APR more than .125% from start to finish. It sounds good, bad brokers can't get away with a bait and switch and more protection for the buyer. That is generally a good thing. I have seen many good faith estimates that "forget" to add certain fees and lowball others so at closing there are big changes and surprises for the buyer. Not the way it should be done. What I don't understand or like is some of the delays now put in place to getting things done. For example now we can't charge any funds other than the credit report for 4 days from the initial application and AU finding being run. I wish someone could explain how that will help the borrowers? Even more confusing is that EVERY bank is interpreting the rules differently. Different waiting periods for example. Some banks say we can email them and some say they must be mailed. One lender from when we are clear to close is saying that then we can't close until 8 days later. Why???? If everything stayed the same and we did our disclosures correctly why the extra waiting period? Only the government bureaucrats who put the rules in know for sure. This will hurt borrowers in a market where rates are rising which is sure to come soon. For the last two days rates have really jumped and who knows for sure what the future holds. Considering they are at historic lows or near that floor we have to assume they will rise in the future. If the government wants to make rules for all the banks to follow it would help if there is one uniform set of rules for all to follow.
Basically a borrower will be locked into the first bank selected and if rates improve elsewhere it will be very hard to switch them even if the loan is not locked. This was already hard to do with the HVCC appraisal mess and now even harder. Also locking for 15 or 30 days and closing quickly will be a thing of the past which will also hurt the borrower. Another well intentioned problem brought to you by an all powerful federal government. Please note as a buyer or a seller things will go even slower and just be prepared for more delays and problems when you buy or sell. We at Choice Finance know about these rules and are as prepared as possible to make sure your loan closes on time. The rules are for ALL loans, conventional, FHA and VA. Purchases and refinances are both under the new rules. If anyone has any questions please let me know how I can help.