Can Creditors Collect Information Beyond The 6 Required Pieces? In addition to the required pieces – Name Income Social Security Number Property Address Estimated Property Value and Mortgage Amount sought – a creditor may collect whatever additional information they deem necessary. However, as soon as you have provided the 6 required pieces, the creditor has 3 business days to provide a Loan Estimate for approved loans.
On December 22nd 2015, the National Association of Realtors (NAR) released their latest Existing Home Sales Report which covered sales in November. The report revealed that sales:
“…fell 10.5 percent to a seasonally adjusted annual rate of 4.76 million in November (lowest since April 2014 at 4.75 million)…”
That revelation gave birth to a series of industry articles, some of which quoted pundits questioning whether the housing market was slowing. In actuality, there is one rather simple explanation to much of the falloff in sales last month. It is likely the implementation of the “Know Before You Owe” mortgage rule, commonly known as the TILA-RESPA Integrated Disclosure (TRID) rule, which went into effect on October 3. These regulations caused house closings to be delayed by an extra three days in November as shown in the graph below.
Three days might sound like a minimal difference. However, since there are only approximately 20 days in a month that a closing would normally take place (Mondays through Fridays), losing three days constitutes well over 10% of all closings. These sales are not lost. They are just moved into the next month’s numbers. In a DS News article on the subject also posted on December 22nd, Auction.com EVP Rick Sharga explained:
“The most likely cause for the weak sales numbers is a delay in processing loans due to the new TRID mortgage requirements imposed by the CFPB. This is the biggest change in mortgage document processing in many years, and there have been numerous reports within the industry of problems implementing the process and the new documentation that comes with it.”
So how is the housing market actually doing?
A better way to look at how well the housing market is doing is to look at the Foot Traffic Report from NAR which quantifies the number of prospective buyers that are actively looking for a home at the current time:
We can see immediately that demand to buy single family homes is increasing over the last few months – not decreasing.
No matter what last month’s sales numbers show, the housing market is still doing well as demand remains strong.
Call 786.554.8063 or email us George@GeorgeAssal.com, WE are here to facilitate and help you during the process of buying, selling, or renting any real estate needs, which will result in reaching your financial goals quickly and with ease, visit our page www.GeorgeAssal.com .
Here is what you should consider when selling your house:
- 5 REASONS TO SELL NOW
- HOW TO GET THE MOST MONEY FROM THE SALE OF YOUR HOME
- DON’T WAIT! MOVE UP TO THE HOUSE YOU ALWAYS WANTED
- THE IMPORTANCE OF USING AN AGENT WHEN SELLING YOUR HOME
- 5 DEMANDS TO MAKE ON YOUR REAL ESTATE AGENT
- HOME PRICES OVER THE LAST YEAR
- THE IMPACT OF RISING PRICES ON HOME APPRAISALS
- 5 REASONS YOU SHOULDN’T FOR SALE BY OWNER (FSBO)
- HOME EQUITY: YOU MAY HAVE MORE THAN YOU THINK?
- BABY BOOMERS FINDING FREEDOM IN RETIREMENT
- WHERE ARE MORTGAGE INTEREST RATES HEADED?
- HOW WILL MORTGAGE RATE HIKES IMPACT HOME SALES?
- TWO THINGS YOU DON’T NEED TO HEAR FROM YOUR LISTING AGENT (US)
- FSBO’s MUST BE READY TO NEGOTIATE
- FANNIE MAE AGREES: HIRE A PRO (US) TO SELL
Call us 786.554.8063 or email us George@GeorgeAssal.com, WE are here to facilitate and help you during the process of buying, selling, or renting any real estate needs, which will result in reaching your financial goals quickly and with ease, visit our page www.GeorgeAssal.com