New laws and regulations aim to reduce the chances of another housing collapse created by deregulation. As these new laws come into effect, it’s a REALTOR®’s responsibility to not only know them but to know how the new laws will change the buying and selling process.  Although these changes may seem like a burden as they add days to an already lengthy process, they also enhance a Realtor’s ability to gather information.

Christopher Gilliam blogs about how new government regulations can impact a closing:

“Recently there have been a number of significant changes to federal laws, regulations and statutes as well as new legislation regarding the lending and real estate industries and real estate transactions. Each change affects homebuyers and sellers, but they all aim to standardize or further regulate the real estate and lending industries in order to further increase transparency and improve the real estate transaction experience for consumers.

Two pieces of legislation enacted by the federal government are the Home Ownership and Equity Protection Act (HOEPA) and the Housing and Economic Recovery Act (HERA). The Federal Reserve Board published the regulations for complying with HOEPA and HERA in the Truth in Lending Act.  Both HOEPA and HERA will affect the timing of real estate transactions.”

Gilliam goes on to explain how the Secure and Fair Enforcement (SAFE) act for mortgage licensing is part of a movement to provide consumers with information to find safer and better deals on their mortgage. While many of the new regulations can add days to a closing, creating a better home buying experience overall is worth the delay.

Click through to read Christopher Gilliam’s full post.

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