Update: The January 16th date has been postponed until April 16, 2009. Here is an expert from the Appraisal Institute regarding the matter. Still be aware that if you if you close after April 16th then the Builder will not be able to offer the incentive(s).
HUD Delays Affiliated-Lender Rule Implementation
The Department of Housing and Urban Development’s ban on builders from offering discounts to homebuyers that use their affiliated mortgage companies has been pushed back to April 16 after the National Association of Home Builders filed a complaint with the U.S. District Court in Alexandria, Va., seeking to block the rule’s implementation, originally set for January 16. For the full article click here.
Effective January 16, builders can no longer offer home buyers incentives, such as a guaranteed interest rate on a mortgage, for using an affiliated mortgage company. One of the Housing and Urban Development’s (HUD) motivating factors behind this statue was to provide additional buyer protection and encourage consumers to shop around for the best possible interest rate. This is great news for the Buyer, but still beware of those incentives. It might take a while for some builders to catch on to the new rule.
Click here for information on this new rule from BuilderOnline.com