Minnesota Home Buyers and Regulation Z

Filed in Minnesota Real Estate by on August 3, 2009 0 Comments


This video courtesy of the Minnesota Association of Realtors

Find out more about 2009 legistlative updates that affect Minnesota real estate.

TILA – Truth in Lending Act

Regulation Z is part of the Truth in Lending Act, which has just had some regulations added on to it this spring, which took effect July 30th, 2009. All of these pertain to disclosure requirements. All of these provide safeguards for Minnesota home buyers who are seeking mortgages. The new regulations ensure that borrowers will have a thorough and up-front understanding of all costs incurred when taking on a mortgage for home purchase or refinance.

Key Points that Minnesota home buyers should be aware of:

  • Additional disclosure on all mortgages that are secured by the borrower’s home, including primary and secondary homes. It also affects re-finance mortgages.
  • Exempt: Investor loans
  • Lender must provide a good faith disclosure within three days of formal application.
  • Lenders cannot charge any fees before GFE is given, except for credit report.
  • Borrower has a seven day waiting period after that. This period can be waived by the borrower unless there is a bona fide emergency.
  • If the APR changes by more than 0.125%, a corrected good faith estimate must be given, beginning another three day waiting period before the loan can close.

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  • Truth in lending cities in MN

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