The Federal Reserve is offering up more consumer protection on the home loan front, as it continues its overhaul of Regulation Z - the Truth in Lending Act (or TiL for short) Regulation Z is the wide-reaching Consumer Protection provision of Truth In Lending law enforced by the Federal Deposit Insurance Corporation. (FDIC) and it is always evolving to keep protecting the modern consumer. It does this through mandating that certain disclosures must be given in writing. Disclosures help consumers determine if a given borrowing transaction is right for them or not when they are in the application process. Details have been sketchy on what may happen - but here, in summary are some of the changes: Effective for applications on or after July 30, 2009, first and second home loan customers, as well as those refinancing have a slew of new benefits. • Lenders must provide you initial truth-in-lending mortgage cost disclosures within three business days of your application. If not, you can back out. • Until you receive the initial disclosure, lenders can't collect any fees, except for a credit check. Lenders and brokers previously collected appraisal, credit and other charges at the onset of the application. • A final truth-in-lending disclosure is due three business days before closing. • Lenders must give you a copy of the appraisal three business days before the scheduled closing. Lenders often failed to informe a consumer of his or her right to a copy of the appraisal. If you never see an appraisal, you have no idea if the home is worth what you are paying. • The lender can't close the loan until at least seven-days after applicants have or mailed the initial disclosure. That gives consumers more time to mull over the transaction. • If there's a change that makes the annual percentage rate rise beyond a set level, say because of rising rates or inaccurate initial information, creditors must provide an additional loan cost disclosure and give you an additional three-business-day waiting period before closing the loan. What this means is that these new regulatory amendements will allow us all, as consumers to be provided with more timely information and help us make a better informed decision. After all, a home is one of the most expensive investments a person will make. Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs. Search all listings in Michigan with pictures and tours...Free! Kathy Toth & Team: Ann Arbor Area Real Estate Experts www.KathyToth.com Keller Williams Realty