Under the new rule that kicks in Jan. 10, lenders must disclose the appraised value of the property to the borrower three days prior to closing.
“Fortunately, we are starting out at a time when loan volumes are low,” says Ben Cowen, president of BOKF mortgage group.
This new QM disclosure requirement should not be a problem over the next few months. But in the spring, when loan volumes pick up, it could get hectic, he warned. “That’s when you see the appraisals backup or delivered at the last minute.”
It can take weeks to get an appraisal. And many purchase transactions have a compressed time line of 30 days or less. “Your turnaround time on the appraisal is going to become very important,” Cowen told NMN.
Cowen is in charge of the retail, correspondent and online lending channels at BOK Financial Corp., which is based in Tulsa, Okla.