For those of you who know me personally, you know I tend to get on my soap-box from time-to-time regarding politics and the government. I try very hard to keep my personal opinions and political rants out of the work environment. However, many of the agents I work with have been asking questions regarding the current and upcoming housing laws and how they may affect delays in mortgage transactions. Below is a list of recently passed or upcoming laws that are going to make it harder than ever to close a deal.

Although I strongly agree with most consumer protection laws, and encourage the spirit behind many of these new proposals… many of us are facing the reality that these policies are simply hindering our ability to help clients buy and sell houses.  Loan originators and real-estate professionals are in the business of closing transactions (real-estate and mortgage), and getting the best deal for our clients.  Here are some laws that are definitely making that harder.

Home Valuation Code of Conduct-

Meant to protect clients from appraisers who have an obligation to a specific bank or loan originator, this law was intended to eliminate the conflict of interest between the valuation and the banks desire to lend.  The problem with this law has been the top of discussion in many editorials and is perfectly summarized here:

www.washingtonpost.com/wp-dyn/content/article/2009/07/03/AR2009070301194.html

HERA- HOEPA Disclosures 

These existing laws are being expanded to create scenarios where clients will be given additional disclosure times between paying up front loan fees or signing loan documents.  The most important item to remember regarding these expanded laws is that applications taken by phone or over the Internet will be subject to increased application times and potential delays.

Although the idea of increased disclosure time is admirable, the truth is that it is unknown whether these additional delays will actual result in clients getting better pricing and/or a more transparent deal.

2009 Energy Bill (commonly referred to as Cap-And-Trade bill)

Regardless of what side of the aisle you lean towards… this new energy bill, in its current draft, will potentially make is more expensive, time and consuming, and difficult to close a real-estate transaction. Here is a sampling of what is being said about a provision in this bill known as REEP that isn’t getting many head-lines:

www.up2daterealestate.com/2009/06/30/how-the-cap-trade-energy-bill-will-affect-home-sellers/

www.cnsnews.com/public/content/article.aspx?RsrcID=50365