Proposed Changes In the Way Mortgage Loans Are Closed

Last week, H.R. 4229 was introduced in Congress to amend the Real Estate Settlement Procedure Act of 1974. The new provisions would be referred to as 'Borrowers' Right to Inspect Closing Documents Act of 2009'. If the Act passes both houses, lenders of federally related mortgage loans would be required to provide the loan documents to the settlement agent at least 4 days prior to the scheduled settlement date. The settlement agent would be required to provide the loan documents and the settlement statement to the borrower at least 3 days prior to the scheduled settlement date. The documents could be transmitted to the borrower by email, fax or by making hard copies available for inspection at the office of the settlement agent.