Friday, June 30, 2017

Congress is Taking Another Look at Dodd-Frank

Back in 2010 the US Congress passed a finance reform bill and President Obama signed it into law. It is commonly referred to as the Dodd-Frank bill after the two primary sponsors. Although the bill had some solid repairs to help shore up the financial system after the big crash, it also had some provisions that have led to a whole different line of problems for the public.

One of the biggest annoyances is the radical change to the appraisal system. For better or worse on cleaning up crooked loan officers and appraiser on the take, it has led to skyrocketing prices and greedy appraisers that gouge relentlessly at consumers. Hopefully they will fix that.

The system also created a three day waiting period after the final closing disclosures are issued. This had already been the case with refinances, but now they added purchases to the waiting period. This just adds yet another delay to the already burdensome length of time it takes to close a real estate transaction with a loan.

Maybe the gang on the hill can smooth out some of these ugly wrinkles int he Dodd Frank law.

With all these crazy regulations governing the lending industry it is wise for buyers to consult their trusted loan pro to go over the dos and don'ts of borrowing and to understand the timeline of a loan closing. So many buyers get frustrated as the process seems to linger endlessly. Sometimes they haven't done what the loan officer has requested and sometimes it is just one of many individuals involved int he process taking a bit longer on their part. Patience is the key.

Buyers should be very cautious before giving up their apartment, ordering a moving truck, or other costly moving related expenses until the loan officer has given the all clear. Some buyers find themselves homeless when they are buying a home, because they gave up their apartment trying to time perfectly the closing of their new house and the end of the rental period. Buyers are well advised to not let greed put them in a bad spot. Dodd-Frank and other heavy industry regulations will continue to create opportunities for delays in closing a real estate transaction. Patience padawan, patience.

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