Well in another attempt to "help" the embattled mortgage process to be more forthright and transparent for buyers something akin to a purchase "rescission period" is on the horizon that goes into affect July 31st 2009.  While very much well-meaning and a good idea in theory, there may (will) be times when this new act will slow your transactions down.  I am going to paste a good synopsis from the big guns at PHH and post a summary and how you can use this to make money at the end...
 
For applications taken as of July 30, 2009, new requirements about the delivery and the accuracy disclosures will apply. One of the new requirements is that the borrower must be provided with an accurate APR disclosure at least three business days prior to closing. It must be in their hands three business days prior to closing and they are permitted to close on the 3rd business day after receiving it or later
 
An easy way to remember new rule is 3/7/3. This means

3 days after application – An initial truth in lending statement must be provided no later than 3 business days after receipt of the application. Our current process which generates an auto-compliance package complies with this requirement so no changes are needed.

7 business days after initial application – Waiting period - the borrower is not permitted to close until at least seven business days have passed since the TIL was placed in the mail or provided to the borrower.

3 business days prior to closing – Waiting period - The borrower must receive an accurate APR on their TIL at least 3 business days prior to closing. If it was provided before that period of time because the loan terms were locked in earlier in the process, no new TIL is required if there is no change to the APR or the change is less than 1/8th (¼ for construction loans).
 
If the final loan terms cause the TIL APR to be understated by more than 1/8th, a revised TIL with an accurate APR must be provided to the borrower so they receive it at least three business days prior to closing. It must be in their hands at that time and they may close on the 3rd business day after it.

Things to consider.  Fees determine the APR so if for any reason (title charges for a bank owned transaction for example) fees are more than anticipated at the time of the first Truth in Lending disclosure a new one must be sent and the buyer has to consider the purchase for 3 days BEFORE they can sign loan documents.  This new rules applies to all lenders.  Changes made at the closing table to appease a customer and having new documents sent to the title company that day are not an option after 7/30/2009.
 
Set yourself up for success and do not write any contracts with a 30 day escrow when financing is required; I have been saying this for roughly a month now.  Now am I saying that the 30 day escrow is done?  No.  Is it on the ropes and ready to go down for the count...most assuredly.

Use this new information as weapon in your arsenal to let your buyers that require financing know that the longer they wait the more likely a new lending wrinkle may sideline them as a buyer for the foreseeable future.  Interest rates are still at historic lows and prices are back to circa 2004 pre boom; what better time than now what better place than Las Vegas!?!?!

Contributed by Dave Reichert at PHH Mortgage