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Our business has been challenging in the last few years. It promises to get a little more challenging at the end of this month.

In an effort to provide consumer protection and transparency when the buyer gets a mortgage, the Government has made law changes to mortgage loan processing and disclosures that take affect on July 30, 2009.

The Government is committed to making sure borrowers completely understand the terms and conditions of their mortgages and are given ample time to review what they are agreeing to.

It's called the MORTGAGE DISCLOSURE IMPROVEMENT ACT OF 2009. You may have already seen an email from a mortgage representative about it. Some banks have already been preparing real estate agents for the changes that will soon occur.

Here is what you need to know about it.

These changes will effect the processing times of loans and, potentially, your business as well. By being proactive and understanding the new Act, your closing dates should still occur in the 30 to 45 day timeframes you are used to.

Initial disclosures must be provided to applicant within three days of loan application. No fees can be collected during this three-day waiting period, except for a reasonable credit report fee.

To simplify, when a borrower makes application, the lender will present them initial disclosures. You have probably seen the disclosure package. It's a stack of forms that includes the Good Faith Estimate, Truth in Lending disclosure, and other legal forms as required by law.

The lender won't be able to collect any fees for appraisals until the borrower has had at least three days after getting the disclosures for review. This means the appraisal report cannot be ordered until after the three-day waiting period after initial disclosures.

The borrower must get these disclosures again at least seven business days before he signs his loan docs. If he doesn't, your closing will be delayed until he does get them and the seven-day period for review has passed.

The borrower must be provided a copy of his appraisal a minimum of three days prior to his loan closing. If he doesn't, your closing will be delayed until he does get a copy and the three-day window for review has passed.

Any increases in fees that result in an APR change of 0.125% of the loan amount require re-disclosure. The borrower must then get his new disclosures and wait at least three days for review to close. Once again, this is being done to make sure the borrower has time to review what he is getting and be comfortable with it.

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