Summary: Recent amendments to mortgage disclosure regulations have required the mortgage lending industry to make adjustments. While larger companies have struggled with the transition, Valley Mortgage’s experience and smaller size helped the company adjust quickly and smoothly.
Fargo, North Dakota, November 16, 2015 — Valley Mortgage, an award-winning mortgage company, has recently adjusted operations to adhere to recent amendments to the Dodd-Frank Act. The new regulations went into effect with new applications taken on or after October 3 to prevent misunderstandings of loan paperwork, which can result in consumers not understanding loan terms and in some cases leading to foreclosure. The new rules require a three-day period to read documents thoroughly before closing a deal and will replace the Truth-in-Lending, Good Faith Estimates and HUD-1 settlement statements with a Loan Estimate and Closing Disclosure.
“The biggest change that the industry’s trying to tackle is they have to get The Closing Disclosure out to the borrowers at least three days before closing,” said Brian Johnson, President of Valley Mortgage, a Fargo, ND-based mortgage lending firm. “The bigger challenge is, if they mail it, lenders actually have to have it out seven days before closing.”
Some banks and lenders may experience difficulty catching up with the amendments. The American Bankers Association worried that banks would lack the software to keep up with new regulations and limit the types of mortgage products on their roster. Johnson said the flexibility and combined experience have helped the company navigate the changes smoothly. He attributes the company’s adaptability to its small size. With a team of six loan officers, Valley Mortgage is able to bypass complications stemming from multiple departments or tiers.
“If you’re a bigger bank or a bigger mortgage company, you may have several people in several departments that may take a longer time adapting to changes in rules and regulations which can lead to delays in processing, underwriting and closing of consumer loans,” he said. “We’re kind of a tight-night group, and we can react quickly.”
Valley Mortgage also benefits from its employees’ experience and thorough training. Johnson, who personally boasts 13 years of industry experience, said each of the loan officers are trained and certified by Xinnix, an Atlanta-based firm specializing in sales and mortgage loan training. Xinnix offers specialized training that ranges from introductory mortgage lending courses to improvement and recruitment courses. “We’re always trying to be the more professional and knowledge-based company,” Johnson said.
About Valley Mortgage: Valley Mortgage Inc. is a mortgage lending firm offering home financing throughout North Dakota and Minnesota. The Fargo, North Dakota-based company is dedicated to creating a better understanding of the mortgage process for clients seeking loans including ND Housing Finance Agency, FHA, VA, Rural Housing and Conventional.
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3301 13th Ave South
Fargo, ND 58103