Today I was to close on refinancing 2 of my duplex properties. No problem - everything was approved and appraisals came back over 10k higher than expected. Then my banker called me this morning and said that we could not close today because not enough time had elapsed between the appraisal and the close. She was stating that we had to wait 10 days after the appraisal was completed and certified before we could close. This is a government regulation. Needless to say, we rescheduled until this Monday. No big deal but I never heard of this government regulation. Has anyone heard of this and details about it?
There are some government regulations regarding disclosing the appraisal and setting the closing. These were put in place to allow the borrower to shop around if they want, however usually it becomes an unnecessary evil like in your case where your ready to get it over. Once again like Ronald Reagan's famous quote, "I'm from the government and I'm here to help!"
With that being said usually there are ways around it, and 10 days seems excessive. The most I have heard of is 7 days. Usually there is an appraisal waiver disclosure in the initial documents that you sign which waives this time period.
I did sign a waiver in which they had to provide me the appraisal within 3 days of it being completed. I received that paperwork and everything is great. I agree Joe - I am getting all kinds of help from the government.
Thanks everyone for your input.
You can thank Sen. Dodd and Congressman Frank for this.
The waiting period is because you're most likely getting new disclosures from the lender that will include an increase in fees, probably loan officer comp due to the yield spread premium being higher based on a percentage of the loan amount and therefore also the lender credit directly to you. There is no law that states you have to wait 10 days after receipt of appraisal especially if you signed the waiver already.
Check your initial GFE if the closing cost are over 10% then an additional time frame applies usually 7 days.
@Tom Vallatini The closing costs are about the same as the GFE. Some fees went slightly up and others down. Pretty much a wash. The only surprise was that the appraisals came in over 10k more than expected - which I really like the market rebound that is occurring.
Thanks for your insight.
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