The third point and fourth points are also correct, but keep in mind that many states also have a Right to Cancel a loan, particularly on refinance transactions for a primary residence that will further delay loan funding.

Bottom line – why is this government regulation helpful? Until you sign on the dotted line you aren’t obligated to take a loan, and none of this regulation stops brokers from underestimating fees in order to collect non-refundable deposits (another upcoming regulation will, though it has problems of its own). While I understand that sometimes people may feel pressure to close a loan right then and there these regulations have the potential to make it more difficult for good borrowers and good lenders to work together.

The best solution is to have educated borrowers rather than regulating away as much as possible. After all, the lenders that made bad decisions are going out of business or are otherwise learning their lessons (except for the too big to fail people who are another problem entirely). The effect of these new regulations will be to make business more difficult for many of the lenders who did it right in the first place. This is nothing more than political grandstanding to make voters think that government is actually doing something helpful.