Reasons for Change. Are You Ready for the Regulation Z & RESPA Changes. Past, Present & Future Changes
|
|
- Derrick Edwards
- 6 years ago
- Views:
Transcription
1 Are You Ready for the Regulation Z & RESPA Changes Community Bankers Association of Illinois Annual Convention September 26, 2009 Presented by: Young & Associates, Inc. 1 Past, Present & Future Changes FRB amends Z which implements TILA and the Home Ownership and Equity Protection Act (HOEPA) 7/30/08 Reg. Z amended by the Mortgage Disclosure Improvement Act (MDIA) 07/30/08 & 10/3/08 HUD amends RESPA / Reg. X 11/17/08 One is already in effect, another just days away, and the last one in Reasons for Change Protect mortgage loan consumers from unfair, abusive, or deceptive lending Inform consumers through disclosures early in the mortgage loan process Require Corrected TILs when Early TILs become inaccurate on mortgage loans More timely and effective GFE / HUD-1 disclosures Protect consumers from unnecessarily high settlement costs on mortgage loans 3 1
2 Order of Presentation Details limited to high level overview Discuss requirements and impact of: Reg. Z - July 30, 2009 changes to Early TILs Reg. Z - October 1, 2009 changes to higher-priced mortgages RESPA - January 1, 2010 GFE / HUD and other changes Other regulatory changes related to mortgage loans 4 Timeline of Events July 30, 2008 Federal Reserve Board (FRB) published the final higher-priced mortgage loan rule Would expand scope of loan transactions requiring early TIL disclosures Congress enacted the Housing and Economic Recovery Act of 2008 Included amendments to the Truth in Lending Act (TILA) Known as the Mortgage Disclosure Improvement Act of 2008 (MDIA) October 3, 2008 Congress amended the MDIA in connection with the Emergency Economic Stabilization Act of 2008 (Stabilization Act) December 10, 2008 FRB proposed amendments to Regulation Z May 7, 2009 FRB announced final amendments to the regulation Published May 19, 2009 in the Federal Register 5 Reasons for Change The MDIA broadens and adds to requirements of the FRB s final Regulation Z rule (Higher Priced Mortgage Loans) which becomes effective 10/1/09 The MDIA requires early, transaction-specific disclosures for mortgage loans secured by dwellings other than the consumer s principal dwelling, and Requires waiting periods from time early disclosures are given until consummation Per the MDIA (and final Reg. Z rule), these new requirements became effective July 30, 2009 All largely in response to current and ongoing mortgage crisis 6 2
3 Primary Focus of the Rule Delivery of early TIL disclosures Eliminates purpose and occupancy criteria of covered transactions Reinforces limitations on imposing application fees Requires additional timing requirements for providing disclosures Requires revised ( Corrected ) TILs if the APR becomes inaccurate and a waiting period before the loan may close in such instances 7 Covered Loan Types in the New Rule A loan with a consumer purpose that is: Subject to RESPA, and Secured by a dwelling owned by the consumer The specific loan purpose is irrelevant (i.e., purchase, refinance, home improvement, other ) A consumer s dwelling is not limited to the consumer s primary residence HELOCs are not covered by this rule 8 Delivery of the Early TIL For covered loan applications, the creditor shall: Make good faith estimates of the TIL disclosure, and Deliver or place them in the mail not later than the third business day after the creditor receives the consumer s written application A business day for this purpose means any day on which the creditor s office are open to the public for carrying on substantially all of its business functions For most institutions, this equates to Monday through Friday No change to this definition for this purpose No requirement to deliver the Early TIL if the application is denied within three-business-days 9 3
4 More Precise Business Day Definition Added Affects when a fee may be imposed and the waiting periods for closing The more precise definition of business day : All calendar days except Sundays and the legal public holidays, such as New Year's Day, the Birthday of Martin Luther King, Jr., Washington's Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day Commentary Four holidays are identified by a specific date (i.e., New Year s Day, Independence Day, Veterans Day, & Christmas Day). When one of these holidays (July 4, for example) falls on a Saturday, federal offices and other entities might observe the holiday on the preceding Friday (July 3). In cases where the more precise rule applies, the observed holiday (in the example, July 3) is a business day. 10 Restrictions on Imposing an Upfront Fee May not impose a fee on the consumer before the consumer has received the Early TIL If the disclosures are mailed to the consumer, the consumer is considered to have received them three business days after they are mailed The more precise business day definition is used here A fee for the credit report, however, may be imposed at application time The new RESPA rule has an identical fee imposition restriction 11 Required Waiting Periods to Close Adds two time periods a creditor will have to wait until a covered loan may be closed The seven-business-day rule (from delivery of initial early disclosures) The three-business-day rule (from receipt of corrected early disclosures), if applicable As a result, the earliest a covered loan may close is the 7 th business day following delivery of the Early TIL The more precise business day definition is used for this requirement 12 4
5 The Three-Day Waiting Period Rule A Corrected TIL is required if: The final APR becomes inaccurate as compared to the early APR Generally, this means a difference of more than 1/8 th of 1 percent on regular transactions and ¼ of 1 percent on irregular transactions most covered loans are regular transactions The consumer must receive the corrected disclosures no later than three business days before consummation The more precise business day definition is used for this requirement If final APR is lower than early APR, the 3-day waiting period is not required, but a corrected or final TIL is required before consummation 13 Consumer Waiver of 7-Day and/or 3-Day Waiting Periods If the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency, the consumer may modify or waive the waiting periods after receiving the TIL disclosures To modify or waive a waiting period, the consumer shall give the creditor a dated written statement that: describes the emergency specifically modifies or waives the waiting period, and bears the signature of all the consumers who are primarily liable on the legal obligation. Printed forms for this purpose are prohibited. 14 Overall Illustration August 2009 Sun Mon Tue Wed Thu Fri Sat May collect fee (if TIL mailed) / Receipt of corrected TIL TIL Must be Delivered / Mailed Corrected TIL mailed 20 7-day & 3-day rules expire Loan may close 7 Application Rec d
6 New Verbiage on TILs Early and Corrected TILs shall contain the following statement: You are not required to complete this agreement merely because you have received these disclosures or signed a loan application. This notice disclosure shall be grouped together with the early or corrected disclosures, as applicable. 16 Impact on Operations Train staff on identifying covered loans Modify loan documentation system templates / checklists Train staff on when fees, other than the credit report fee, may be imposed Train staff on calculating proper waiting periods Document loan files when corrected early disclosures are delivered / mailed Proper documentation of instances when a consumer waives a waiting period Establishing procedures to determine final APR before consummation to assure compliance with the rule s waiting period requirements 17 Issued 7/15/08 by the Federal Reserve Board Effective date Most parts are effective on October 1, 2009 Mandatory escrow sections are effective in
7 Protections on Higher-Priced Mortgage Loans Prohibit creditors from extending credit without regard to a consumer s ability to repay from sources other than the collateral itself Require creditors to verify income and assets they rely upon to determine repayment ability Prohibit prepayment penalties except under certain conditions, and Require creditors to establish escrow accounts for taxes and insurance Creditors permitted to allow borrowers to cancel escrows 12 months after loan consummation Need to consider the above for covered loan applications received on or after October 1, The Higher-Priced Mortgage Loan (HPML) Definition The index definition uses average offer rates for the lowest-risk prime mortgages, termed average prime offer rates The Fed has created a rate table Based on Freddie Mac Primary Mortgage Market Survey (PMMS) Found at The threshold is set at: 1.5 percentage points above the average prime offer rate on a comparable transaction for first-lien loans, and 3.5 percentage points for subordinate-lien loans. 20 Rate Spread Calculator Partial Screen Print 21 7
8 Covered Loan Types in the New Rule Limited to loans secured by the consumer s principal dwelling Whether real estate is involved is irrelevant Exemptions HELOC Reverse Mortgages Construction-Only Loans Bridge Loans 22 Ability to Repay Requirement Prohibits a creditor from extending any HOEPA loan or higher-priced mortgage loan based on the collateral without regard to repayment ability Governs the process for extending credit Not intended to dictate which types of credit or credit terms are permissible and which are not Provides that the creditor is responsible for assessing repayment ability as of consummation Explicitly requires that the creditor verify income and assets using reliable third-party documents Requires assessing the consumer s ability to pay PITI and similar mortgage-related expenses 23 Income, Assets, and Employment Provides that sources of repayment ability include current and reasonably expected income, employment, and assets A creditor may base its determination of repayment ability on assets other than the collateral, or both Provides broad flexibility as to the types of income, assets, and employment a creditor may rely on 24 8
9 Obligations Creditor must consider the consumer s current obligations No need to inquire about future obligations Must include simultaneous obligations of which the creditor has knowledge Any additional mortgages that are contemplated as a part of the total new obligation must be included in the obligation category 25 Effect of the Rule Will rarely, if ever, permit a creditor to make even isolated no income, no asset loans in the higherpriced mortgage loan market Will also affect the availability of no income, no asset loans in the prime market Creditors must obtain written verification of income, etc. Oral information from a third-party would not satisfy the rule Not required to verify amounts of income or assets the creditor is not relying on to determine repayment ability 26 Largest Scheduled Payment in 7 Years Must underwrite ability to repay based on largest payment expected in first 7 years of the loan For fixed rate loans, the lender will use the fixed rate and the fixed payment If rate and/or payment can change, a lender has to choose a rate and payment at which to assess repayment ability For ARM loans, a creditor will have a presumption of compliance if the creditor uses the largest scheduled payment of principal and interest in the first seven years 27 9
10 Prepayment Penalties Prohibits a prepayment penalty with a HPML or HOEPA loan if payments can change during the fouryear period following consummation For all other HMPLs and HOEPA loans whose payments may not change for four years after consummation, the rule limits prepayment penalty periods to a maximum of two years following consummation, provided: the penalty is permitted by other applicable law, and it must not apply in the case of a refinancing by the same creditor or its affiliate. 28 Mandatory Escrow on HPMLs Prohibits a creditor from extending a first-lien HPML secured by a principal dwelling without escrowing property taxes, homeowners insurance, and other insurance obligations required by the creditor Effective Dates for certain loan types Site-built homes for applications on or after April 1, 2010, Manufactured housing applications on or after October 1, 2010 Sets the mandatory period for escrows at 12 months after loan origination, at which point creditors may allow borrowers to opt out of escrow 29 Impact on Operations Train staff on how to identify whether a loan is a HPML If such loans will be made Assure that the ability to repay requirements are met and documented Assure that prepayment penalties, if any, are compliant Assure that an escrow account is established is a first-lien loan 30 10
11 RESPA Changes - Overview Revised Servicing Disclosure Statement Already in effect as of Jan. 16, 2009 New application definition, among others New Good Faith Estimate (GFE) New HUD Settlement Statement All become effective Jan. 1, RESPA Servicing Disclosure Revised the disclosure in accordance with changes made to RESPA long ago Must be delivered at application or within three business days of application No longer must be given at time of face-to-face application No longer needs to be signed by applicant(s) No longer requires annual updates to transfer percentages Became effective January 16, RESPA Application Definition Submission of borrower s financial information including: Name Monthly income SSN (to enable ordering of credit report) Property address Estimate of value of property Loan amount sought, and Any other information the creditor may deem necessary (your choice) Becomes effective January 1,
12 Defined as: RESPA New GFE Estimate of settlement charges, and Related loan information Intended to serve as a shopping document Commits creditor to fees and terms unless a changed circumstance exists In other words it is binding Must begin using for covered application received on or after January 1, RESPA Changed Circumstance Acts of God, war, disaster, or other emergency; Information particular to the borrower or transaction that was relied on in providing the GFE and that changes or is found to be inaccurate after the GFE has been provided New information particular to the borrower or transaction that was not relied on in providing the GFE; or Other circumstances that are particular to the borrower or transaction, including boundary disputes, the need for flood insurance, or environmental problems 35 RESPA Changed Circumstance Changed circumstances do not include: The borrower s name, the borrower s monthly income, the property address, an estimate of the value of the property, the mortgage loan amount sought, and any information contained in any credit report obtained by the loan originator prior to providing the GFE, unless the information changes or is found to be inaccurate after the GFE has been provided; or Market price fluctuations by themselves 36 12
13 RESPA GFE Delivery No real changes here, except A revised GFE (as a result of a changed circumstance) must be given within three business days of receiving information relating to the circumstance Also, RESPA has a similar rule to FRB s limitation on fee imposition at application Applicant must first receive the GFE before a fee may be imposed, except a credit report fee 37 RESPA GFE Content (Page 1) Important Dates How long quoted interest rate is available How long estimated fees are available When borrower will have to close after rate is locked Time period to lock rate 38 RESPA GFE Content (Page 1) Summary of Loan Terms Loan amount Initial interest rate Initial monthly payment, including PMI if applicable Whether or not loan balance may rise Whether monthly payments may rise Is there a prepayment penalty Is there a balloon payment Escrow payment information, if applicable Total charges broken out by origination and other settlement services 39 13
14 RESPA GFE Content (Page 2) Origination charges Bank charges lumped together Credit or charge for chosen rate Charges for other settlement services Those lender selects Title insurance Those borrower can shop for Recording / Transfer taxes Escrow Per diem interest Insurance All disclosed charges on GFE must be good for at least 10 business days Only the interest rate dependent charges may change as long as the rate has not been locked Total all charges (carries forward to Page 1) 40 RESPA GFE Content (Page 3) Table identifying which types of charges may change from GFE to HUD Tradeoff table of comparable loans optional for lenders to complete Shopping chart for use by consumer 41 RESPA GFE Fee Tolerances Those that cannot increase Bank s origination charge Credit / Charge for selected rate (after rate has been locked) Transfer taxes No room for error with these! Will require careful planning on lender s part in identifying bank charges 42 14
15 RESPA GFE Fee Tolerances Those Subject to 10% Tolerance (as a whole) Services the lender selects Title services / title insurance if borrower selects from lender s list Services selected by borrower from lender s list Recording charges The 10% tolerance is for the aggregate of these fees and not individually 43 RESPA GFE Fee Tolerances Those charges that can change by any amount Services (including title services) shopped for by borrower and not selected from the lender s list Escrow deposits Per diem interest amounts Homeowner s insurance 44 RESPA GFE Fee Tolerances If fees on HUD vary from GFE fees outside of permissible tolerances, then Must correct within 30 days of settlement Most likely to change HUD fees to agree to those disclosed on the GFE 45 15
16 RESPA New HUD Very similar to current form with some changes to conform to the GFE line items Most significant change includes a comparison of GFE and HUD fees Also, not includes a summary of loan terms Banks using settlement agents must give them adequate information so they may complete this portion of the HUD 46 New RESPA Guidance HUD recently issued a list of frequently asked questions (FAQ) May be found on their Web site at resparulefaqs.pdf Helps clarify some confusing issues May want to locate and use in staff training 47 Other Related Regulatory Concerns New Flood FAQs Issued by the Agencies July 21, 2009 Effective September 21, 2009 Found at No changes to the regulation, simply clarification on numerous requirements 48 16
17 Other Related Regulatory Concerns S.A.F.E. Act Agencies have issued a proposal June 9, 2009 Found at When finalized, will require mortgage loan officers to register on national registry Will likely have 180 days from start date of registry 49 The End Questions now? Later bbradley@younginc.com Thank you for your attention Enjoy the rest of the conference! 50 17
What is T.R.I.D TILA-RESPA Integrated Disclosure
T.R.I.D. What is T.R.I.D TILA-RESPA Integrated Disclosure The CFPB has issued a rule that is aimed to simplify and improve disclosure forms for mortgage transactions. The rule replaces the current forms
More informationThe new Loan Estimate Form integrates and replaces the existing RESPA Good Faith Estimate and the initial Truth in Lending forms.
The Consumer Financial Protection Bureau s (CFPB) integrated mortgage disclosure rule will be effective August 1, 2015. This rule consolidates four existing disclosures required under Truth-in-Lending
More informationUnderstanding the New Truth in Lending Act Disclosure Rules Effective July 30 th
Understanding the New Truth in Lending Act Disclosure Rules Effective July 30 th July 15, 2009 The home mortgage industry is abuzz with concerns about new disclosure rules under the Truth in Lending Act
More informationWhat Real Estate Agents/Brokers Need to Know: Know Before You Owe or the TILA RESPA Integrated Disclosure (TRID) Rule.
What Real Estate Agents/Brokers Need to Know: Know Before You Owe or the TILA RESPA Integrated Disclosure (TRID) Rule Presented by Overview Know Before You Owe (the TILA RESPA Integrated Disclosure (TRID)
More informationSection 12.1: Regulation Z Mortgage Disclosure Improvement Act (MDIA) Policy
Section 12.1: Regulation Z Mortgage Disclosure Improvement Act (MDIA) Policy Background SecurityNational Mortgage Company (SNMC) shall comply with the Housing and Economic Recovery Act of 2008 (HERA) which
More informationTRID October 3, 2015!
TRID October 3, 2015! Purpose This announcement includes the following topics: Consumer Financial Protection Bureau (CFPB), Truth-in-Lending and RESPA Integrated Disclosures (TRID). Policy It is MSI Policy
More informationTRID: TILA-RESPA Integrated Disclosures Rules and Procedures Overview
TRID: TILA-RESPA Integrated Disclosures Rules and Procedures Overview Disclaimer Information included is intended for general information purposes only and is current as October 2, 2015. It should not
More informationTruth in Lending / RESPA Regulatory Changes
Steve H. Powell & Company Truth in Lending / RESPA Regulatory Changes Truth in Lending and RESPA Update Note: This publication is not offered as legal advice. Readers should seek legal counsel for advice
More informationREAL ESTATE SETTLEMENT PROCEDURES ACT ( RESPA ) POLICY
I. INTRODUCTION A. Background and Overview REAL ESTATE SETTLEMENT PROCEDURES ACT ( RESPA ) POLICY The Real Estate Settlement Procedures Act of 1974 ( RESPA ), 12 U.S.C. 2601 et seq., is a consumer disclosure
More informationComment Call (12-14)
Comment Call (12-14) To: From: All Affiliated Credit Union CEOs Veronica Madsen Director of Regulatory Affairs Date: August 28, 2012 RE: CFPB Combined TILA/RESPA Disclosures Summary The Dodd-Frank Wall
More informationTHE CLOSING DISCLOSURE
THE CLOSING DISCLOSURE Coverage: Most Closed-End Consumer Mortgages Not HELOCs, reverse mortgages or mobile home loans not attached to real property Agency/Citation: Consumer Financial Protection Bureau
More informationAdvertising, Consumer protection, Credit, Credit unions, Mortgages, National banks,
12 CFR part 1026 Advertising, Consumer protection, Credit, Credit unions, Mortgages, National banks, Recordkeeping and recordkeeping requirements, Reporting, Savings associations, Truth in lending. Authority
More informationBoard of Governors of the Federal Reserve System; Truth in Lending
Board of Governors of the Federal Reserve System; Truth in Lending ABA Contact: Bob Davis (202) 663-5588 rdavis@aba.com Joe Pigg (202) 663-5480 jpigg@aba.com Rod Alba (202) 663-5592 ralba@aba.com Krista
More informationHUD s New RESPA Rule
1300 Nineteenth Street, NW Fifth Floor Washington, DC 20036 202.628.2000 www.wbsk.com HUD s New RESPA Rule November 24, 2008 On November 17, 2008 the United States Department of Housing and Urban Development
More informationCFPB: The New Closing Process
CFPB: The New Closing Process Course Objective: Relate the new CFPB Rules to what the real estate transaction process could look like after August 1, 2015 (CFPB revised date: October 3, 2015) INTRODUCTION
More informationTRID. Acceptable Broker Submissions Booklet WHSL EQUAL HOUSING LENDER MEMBER FDIC NMLS #478471
TRID Acceptable Broker Submissions Booklet EQUAL HOUSING LENDER MEMBER FDIC NMLS #478471 WHSL-0022-0116 At Fremont Bank, our goal is to make the submission of your loan applications to us as streamlined
More informationRESPA REFORM TRAINING Effective January 1, FOR MORTGAGE PROFESSIONALS ONLY Rev 1, 12/29/09
RESPA REFORM TRAINING Effective January 1, 2010 OVERVIEW In November 2008, HUD published its final rule amending Regulation X of the Real Estate Settlement Procedures Act (RESPA). The final rule includes
More informationRULES AND AMENDMENTS TO REGULATION Z
Attorneys at Law Arlington Office 2310 W. Interstate 20, Suite 100 Telephone: 918-461-5500 Arlington, Texas 76017-1868 Fax: 817-856-6060 RULES AND AMENDMENTS TO REGULATION Z OCTOBER 1, 2009 In an effort
More informationRegulation X Real Estate Settlement Procedures Act
Regulation X Real Estate Settlement Procedures Act The Real Estate Settlement Procedures Act of 1974 (RESPA) (12 U.S.C. 2601 et seq.) (the Act) became effective on June 20, 1975. The Act requires lenders,
More informationCFPB Consumer Laws and Regulations
Regulation X Real Estate Settlement Procedures Act The Real Estate Settlement Procedures Act of 1974 () (12 U.S.C. 2601 et seq.) (the Act) became effective on June 20, 1975. The Act requires lenders, mortgage
More informationThe TILA-RESPA Integrated Disclosures Rule consolidates. Estimate (GFE) into the Loan Estimate and. the Closing Disclosure
Agenda This training consists of three parts explaining the general requirements of the law that consolidated multiple disclosures into two separate forms; the Loan Estimate and the Closing Disclosure:
More informationInteragency Consumer Laws and Regulations
Regulation X Real Estate Settlement Procedures Act The Real Estate Settlement Procedures Act of 1974 () (12 U.S.C. 2601 et seq.) (the Act) became effective on June 20, 1975. The Act requires lenders, mortgage
More informationDelivered in partnership with your local title agency
Delivered in partnership with your local title agency titlesinsured 1.877.439.4910 About this Manual In an effort to provide a thorough condensed training reference, this manual was created based on the
More informationComparison of 2010 RESPA-TILA Disclosure Rules to TILA RESPA Integrated Disclosure Rules
Comparison of 2010 RESPA-TILA Disclosure Rules to TILA RESPA Integrated Disclosure Rules Covered Transactions Exemptions Title of Instructions for completion of Delivery of Electronic delivery Federally
More informationReference Guide: Loan Estimate (LE) TILA- RESPA Integrated Disclosure (TRID) Rule Requirements
Reference Guide: Loan Estimate (LE) TILA- RESPA Integrated Disclosure (TRID) Rule Requirements The purpose of this document is to provide a reference guide for the Loan Estimate (LE) TILA-RESPA Integrated
More informationNEW INTEGRATED DISCLOSURES EFFECTIVE AUGUST 1, May 7, 2015
NEW INTEGRATED DISCLOSURES EFFECTIVE AUGUST 1, 2015 from a program presentation made by Nellie Woodward at the Texas Land and Mortgage/TLDA membership meeting held on May 7, 2015 The following BRIEFLY
More informationTRID. Acceptable Broker Submissions Booklet WHSL EQUAL HOUSING LENDER MEMBER FDIC NMLS #478471
TRID Acceptable Broker Submissions Booklet EQUAL HOUSING LENDER MEMBER FDIC NMLS #478471 WHSL-0022-1015 As Fremont Bank transitions to the new Rule, our goal is to make the submission of your loan applications
More informationTILA-RESPA Integrated Disclosure Rule FAQs for Wholesale Brokers
TILA-RESPA Integrated Disclosure Rule FAQs for Wholesale Brokers DEFINITIONS AND ACRONYMS TRID: TILA-RESPA Integrated Disclosure Know Before You Owe Rule, text of the rule and more information available
More informationBROWN, FOWLER & ALSUP A Professional Corporation Attorneys at Law MEMORANDUM. RESPA 101 The New Good Faith Estimate (GFE) Rules
BROWN, FOWLER & ALSUP A Professional Corporation Attorneys at Law J. Alton Alsup 10333 Richmond, Suite 860 Telephone 713/468-0400 Board Certified in Residential Real Estate Law Texas Board of Legal Specialization
More informationWHOLESALE Good Faith Estimate Compliance Manual
WHOLESALE Good Faith Estimate Compliance Manual Understanding the 2010 GFE Compliance Department 2/2/2015 2015 Pacific One Lending. http://www.nmlsconsumeraccess.org. Rates, fees and programs are subjected
More informationUnderstanding CFPB Rules CONSUMER FINANCIAL PROTECTION BUREAU
Understanding CFPB Rules CONSUMER FINANCIAL PROTECTION BUREAU The Consumer Financial Protection Bureau The CFPB is a new federal agency Created by Dodd Frank Wall Street and Consumer Protection Act Dodd
More informationGood Faith Estimate Training 2/3/14
Good Faith Estimate Training 2/3/14 Objectives At the end of this training you will be able to: Understand RESPA Reform Recognize a complete Loan Application Understand GFE requirements Know requirements
More informationHow the New RESPA Rule. Impacts Wholesale Lending. By Richard Andreano, Jr.
How the New RESPA Rule Impacts Wholesale Lending By Richard Andreano, Jr. 1 Overview of Presentation Focus on certain aspects of revised RESPA regulation, Regulation X, that are scheduled to become effective
More informationRESPA/TILA Integration
RESPA/TILA Integration 1 Presented by: Richard Hogan, Vice President & Associate General Counsel Tracy Pandolfo, Director Agent Services Agenda Basics: Why We re Here Final Rule The New Forms Evaluating
More informationTHIS IS NOT LEGAL ADVICE
I. Ability to Repay (ATR) Qualified Mortgage (QM) Overview In 2008 the Board of Governors of the Federal Reserve System adopted a rule under the Truth in Lending Act prohibiting creditors from making higher-priced
More informationConsumer Regulatory Changes
Consumer Regulatory Changes Federal Reserve Board Division of Consumer and Community Affairs August 19, 2010 Visit us at www.consumercomplianceoutlook.org The The opinions expressed in in this this presentation
More informationNotice Regarding Updated Regulations and Summary of Recent CFPB Mortgage Rules
April 23, 2012 Notice Regarding Updated Regulations and Summary of Recent CFPB Mortgage Rules The Consumer Financial Protection Bureau ( CFPB or Bureau ) recently issued final rules related to mortgage
More informationSection 1.35 Compliance Overview
Section 1.35 Compliance Overview In This Section This section contains the following topics: Overview... 2 General... 2 Overview... 2 Related Bulletins... 2 General... 2 Nationwide Mortgage Licensing System
More informationCFPB: The New Closing Process
CFPB: The New Closing Process Course Objective: Relate the new CFPB Rules to what the real estate transaction process could look like after August 1, 2015 INTRODUCTION (10-12 minute segment) TEACHING OBJECTIVE:
More informationIntegrated Disclosure Vocabulary List. Term Definition as of 8/1/2015 Adjustments and Other Credits
Integrated Disclosure Vocabulary List Term Definition as of 8/1/2015 Adjustments and Other Credits Application (triggering RESPA and TILA early disclosures) Included in this is the total amount of all
More informationMortgage Bankers and Brokers Association of New Hampshire
Mortgage Bankers and Brokers Association of New Hampshire March 24, 2014 Ken Markison, MBA Regulatory Counsel Presented by David H. Stevens President, Mortgage Bankers Association Introduction Seven weeks
More informationForensic Review Report
Forensic Review Report Prepared by Aequitas Borrower: John Smith Date: 7/9/2009 Copyright 2009 MHI. All Rights Reserved. 2 of 19 TABLE OF CONTENTS Review Letter... 4 Forensic Review Summary... 5 Forensic
More informationTRID. Quick Compliance Guide T I L A-RESPA INTEGRAT E D DISCLOSURES Temenos USA. All rights reserved
TRID T I L A-RESPA INTEGRAT E D DISCLOSURES Quick Compliance Guide 09.01.2015 2015 Temenos USA. All rights reserved w: temenos.com/tricomply p: 205.991.5636 e: usainfo@temenos.com While the publisher and
More informationNew RESPA Regulations for Mortgage Finance: Are You Ready? Complying With the Sweeping Changes in Real Estate Settlement Procedures
presents New RESPA Regulations for Mortgage Finance: Are You Ready? Complying With the Sweeping Changes in Real Estate Settlement Procedures A Live 90-Minute Teleconference/Webinar with Interactive Q&A
More informationAny person, who for direct or indirect compensation, assists a consumer in obtaining or applying to obtain a residential mortgage loan; or
Mortgage Reform and Anti-Predatory Lending Act Although it has received far less attention than other titles of the Dodd-Frank Act (the Act or Dodd-Frank ), such as those addressing derivatives, too big
More informationSection 1.35 Compliance Overview
Section 1.35 Compliance Overview In This Section This section contains the following topics: Overview... 2 Related Bulletins... 2 Nationwide Mortgage Licensing System Registry (S.A.F.E. Act)... 3 Nationwide
More informationExecutive Summary of the 2017 TILA- RESPA Rule
1700 G Street NW, Washington, DC 20552 July 7, 2017 Executive Summary of the 2017 TILA- RESPA Rule On July 7, 2017, the Consumer Financial Protection Bureau (Bureau) issued a final rule (2017 TILA-RESPA
More informationRESPA Rules and the GFE
REVISED 05/01/2012 PAGE 1 OF 5 RESPA Rules and the GFE Effective Date Per the Real Estate Settlement Procedures Act (RESPA), rules in this policy are effective for all mortgage loans originated on or after
More informationPrepared for: Borrower. 123 Main Street. Anytown, US 10000
FORENSIC COMPLIANCE AUDIT Prepared for: Borrower 123 Main Street Anytown, US 10000 2 Contents Document Review... 5 Summary of Findings. 6 Compliance Review 8 Compliance Details....11 Loan Details. 18 Loan
More informationOur Industry Today TRID AND BEYOND. RDH Education Services. Presented by RDH Education Services
RDH Education Services Our Industry Today TRID AND BEYOND Presented by RDH Education Services RDH Education Services can be contacted at: 4361 Technology Dr, Unit A, Livermore, CA 94551 877-734-4347 info@rdheducation.com
More informationTILA RESPA Integrated Disclosures
TILA RESPA Integrated Disclosures Jimmy Vuong Branch Relations Manager jvuong@afncorp.com Rev. 03/22/2017 American Financial Network, Inc. All Rights Reserved. The Beta is Open Please see Encompass Newsflash
More informationThe TILA-RESPA Integrated Disclosure (TRID) Rule. Compiled by: 110 Title, LLC
The TILA-RESPA Integrated Disclosure (TRID) Rule Compiled by: 110 Title, LLC 1 I. Introductory Note The Dodd-Frank Wall Street Reform Act and Consumer Protection Act of 2010 (Dodd-Frank), ushered in the
More informationNew RESPA Rule FAQs. (New items are in bold)
New RESPA Rule FAQs (New items are in bold) General 1) Q: When does the new RESPA Rule take effect? A: The November 2008 RESPA Rule was effective January 16, 2009. Implementation of the provisions are
More informationTILA / RESPA Integration
The Times, They Are A-Changing (Again)! presented by Jack Konyk Executive Director, Government Affairs OwnOK The Future of Oklahoma Real Estate Feb. 12, 2015 Petroleum Club Oklahoma City, OK 2 Upcoming
More informationYour Company Name. 123 Main St., Anytown, CA Fax
Your Company Name 123 Main St., Anytown, CA 99999 555-555-1212 555-555-1213 Fax www.forensicmortgageauditor.com Mary@forensicmortgageauditor.com Type of Report: Forensic Mortgage Audit Date Prepared: 11/10/2009
More informationRESPA/TILA INTEGRATION PART II: CLOSING DISCLOSURE AND ACTION PLAN INCLUDES CLOSING DISCLOSURE TABLE. Jonathan Foxx * WHITE PAPER
RESPA/TILA INTEGRATION PART II: CLOSING DISCLOSURE AND ACTION PLAN INCLUDES CLOSING DISCLOSURE TABLE Jonathan Foxx * WHITE PAPER This second White Paper of a four-part series will introduce and treat the
More informationTILA-RESPA Integrated Disclosure (TRID) Rule a.k.a. Know Before You Owe. with New Haven Middlesex Association of REALTORS
TILA-RESPA Integrated Disclosure (TRID) Rule a.k.a. Know Before You Owe with New Haven Middlesex Association of REALTORS July 16, 2015 Jeremy Potter, General Counsel and Chief Compliance Officer, Norcom
More information24 CFR Ch. XX ( Edition) APPENDIX C TO PART 3500 INSTRUCTIONS FOR
Pt. 3500 originator license and registration. This special category recognizes limited, heavily regulated activities that meet strict criteria that are different from the criteria for specific exemptions
More informationChicago Title Insurance Company
Page 1 of 5 You're receiving this email because of your relationship with Chicago Title Insurance Company. Please confirm your continued interest in receiving email from us. You may unsubscribe if you
More informationNational Mortgage Loan Originator Review Crammer (ml) Federal Mortgage-Related Laws
Course: Lesson: National Mortgage Loan Originator Review Crammer (ml) Federal Mortgage-Related Laws 1. According to HMDA, what must be forwarded to the regulator by March 1 of each year? A. Adverse Action
More informationThe Federal Reserve s HOEPA Proposal and Subprime Related Legislation by. Locke Lord Bissell & Liddell LLP Barnett Sivon & Natter P.C.
The Federal Reserve s HOEPA Proposal and Subprime Related Legislation by Charlotte M. Bahin Raymond Natter Locke Lord Bissell & Liddell LLP Barnett Sivon & Natter P.C. After receiving significant pressure
More informationTILA-RESPA Integrated Disclosures (TRID) FAQs
TILA-RESPA Integrated Disclosures (TRID) FAQs On July 21, 2015, the Consumer Financial Protection Bureau (CFPB) published the final rule to delay the effective date of the TILA-RESPA Integrated Disclosure
More informationTips for Implementing the TILA-RESPA Integrated Disclosure rule
Tips for Implementing the TILA-RESPA Integrated Disclosure rule To support your preparation efforts when implementing the TILA-RESPA Integrated Disclosure (TRID) rule effective for applications dated on
More informationTILA/RESPA Integrated Disclosure Rule
TILA/RESPA Integrated Disclosure Rule Solving the Puzzle July 22, 2015 Presented by: Gary D. Clark, CMB Chief Operating Officer Sierra Pacific Mortgage Webinar All lines will be muted You can type your
More informationTILA-RESPA Integrated Disclosure rule
May 2018 TILA-RESPA Integrated Disclosure rule Small entity compliance guide Guide for creating on-brand reports Version Log The Bureau updates this Guide on a periodic basis to reflect finalized clarifications
More informationThe New World of Mortgage Regulation A Look Back - A Look Around and a Look Forward. Barry D. Johnson Shareholder SettlePou
The New World of Mortgage Regulation A Look Back - A Look Around and a Look Forward By Barry D. Johnson Shareholder SettlePou 3333 Lee Parkway, 8 th Floor Dallas, Texas 75219 (214) 520-3300 bjohnson@settlepou.com
More informationA GFE must be issued when the originator receives an application OR six minimum pieces of information sufficient to complete an application including:
PROVIDENT BANK MORTGAGE RESPA REFORM Effective January 1, 2010 RESPA OVERVIEW The goal of RESPA Reform is to provide consumers with the information needed to readily understand loan terms and total settlement
More information11 th Annual Eastern Secondary Market Conference. February 5-7, 2014 The Hyatt Regency Orlando
11 th Annual Eastern Secondary Market Conference February 5-7, 2014 The Hyatt Regency Orlando Scott D. Samlin Partner Scott Samlin is a New York partner in the firm s Financial Services & Products Group.
More informationGuidance for Completing the 2010 Good Faith Estimate
Guidance for Completing the 2010 Good Faith Estimate Please use this information for assistance when completing the 2010 GFE. Initial accuracy is imperative as it is binding and inaccuracy may result in
More informationAbility-to-Repay Rule
This summary is provided by the Minnesota Credit Union Network for informational purposes only, and is intended to provide credit unions with the general regulatory requirements and effective dates for
More informationFREQUENTLY ASKED QUESTIONS (FAQ) FOR IMPLEMENTING THE TILA-RESPA INTEGRATED DISCLOSURE RULE (TRID)
Best Practices FREQUENTLY ASKED QUESTIONS (FAQ) FOR IMPLEMENTING THE TILA-RESPA INTEGRATED DISCLOSURE RULE (TRID) SUMMARY With the upcoming implementation of the Truth in Lending (TILA)/Real Estate Settlement
More informationTRID Update: 6 Months In, Areas of Concern and Uncertainty
TRID Update: 6 Months In, Areas of Concern and Uncertainty New Jersey Bankers Association prycompliance@hotmail.com 0 0 of of 6674 Clarifications Coming CFPB announced upcoming Proposed Rule in April 28,
More informationCFPB FINAL RULES SUN WEST IMPLEMENTATION GUIDE
CFPB FINAL RULES SUN WEST IMPLEMENTATION GUIDE January 1, 2018 In case of any queries regarding the information available in this guide, please reach us at qmteam@swmc.com. Sun West Mortgage Company, Inc.
More informationLoan Originator Compensation Guide
Loan Originator Compensation Guide Overview The Federal Reserve Board is implementing new rules on 4/6/2011 under Regulation Z of the Truth in Lending Act which governs compensation paid to loan originators
More informationTIL/RESPA Final Rules on Integrated Mortgage Disclosures
TIL/RESPA Final Rules on Integrated Mortgage Disclosures CLAconnect.com Disclaimers The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting,
More informationHow to Start Planning for the CFPB Mortgage Rules. May 2, 2013
How to Start Planning for the CFPB Mortgage Rules May 2, Jon Bundy Regulatory Compliance Manager CUNA Mutual Group 608-665-7101 Jonathan.bundy@cunamutual.com Agenda Short Review of Each Rule We will avoid
More informationFully Amortizing Payment A periodic payment of principal and interest that will fully repay the loan amount over the loan term.
Section 12.7: : Regulation Z Ability to Repay and Qualified Mortgages Summary On January 10, 2013, Regulation Z was amended to require creditors to make a reasonable, good faith determination of a consumer
More informationFacing Today s Real Estate Regulations
Proudly Sponsored by Facing Today s Real Estate Regulations Presented by Don Braspenninckx Day, June 11, 2016 1:30 p.m. 1 Introduction Numerous regulatory changes in the real estate industry within last
More informationHERE S. TRID. ROBERT E. PINDER (904) ACC Quick Hit -- Truth-in-Lending Act/RESPA Integrated Disclosures Rule June 18, 2015
HERE S. TRID ACC Quick Hit -- Truth-in-Lending Act/RESPA Integrated Disclosures Rule June 18, 2015 ROBERT E. PINDER rpinder@rtlaw.com (904) 346-5551 HERE S. TRID 2 COUNTDOWN TO TRID TRID Goes into Effect
More informationAbility to Repay / Qualified Mortgages Frequently Asked Questions January 15, 2014
Q: Which transactions are covered and excluded? Covered transactions - First liens - Fixed Seconds - Refinances Excluded transactions Home Equity Line of Credit loans (HELOCs) Interest-only (QM) Transactions
More informationPPDocs, Inc. Compliance Certificate
PPDocs, Inc. Lender: Peirson & Patterson Borrower(s): Webinar Demo, a single man Property: 2310 W Interstate 20, Arlington, TX 76017 Loan Type: First Lien Fixed Rate Conventional Loan Loan Purpose: Purchase
More informationTITLE TERMS YOU NEED TO KNOW
TITLE TERMS YOU NEED TO KNOW Abstract Plant A geographically arranged abstract plant, currently kept to date, that is adequate for use in insuring titles, so as to provide for the safety and protection
More information6/21/2013. Section III. Federal Rules, Regulations and Their Requirements. Federal Regulations. Federal Regulations
Section III Federal Rules, Regulations and Their Requirements Federal Regulations The federal rules, regulations and requirements in this course are complied into 4 categories for analysis: Laws requiring
More informationMORTGAGE LENDING PRINCIPLES & PRACTICES, 8TH ED. 2ND PRINTING
MORTGAGE LENDING PRINCIPLES & PRACTICES, 8TH ED. 2ND PRINTING Updates listed most recent to previous Chapter 8 Updates 01.09.2019 Page 220: Consumer Rights Add after last bullet As of May 24, 2018, nationwide
More informationThe New Mortgage Disclosure Forms: Know the Rule
The New Mortgage Disclosure Forms: Know the Rule 10:15 11:15 a.m. Phillip L. Schulman, Esq., Partner, K&L Gates LLP THE WAIT IS OVER. THE ANXIETY BEGINS. New RESPA-TILA Mortgage Disclosure Forms Phillip
More informationNew RESPA Rule FAQs. (New items are in bold)
New RESPA Rule FAQs (New items are in bold) Table of Contents General... 3 GFE... 5 GFE General... 5 GFE Seller paid items... 9 GFE Interest rate expiration... 9 GFE Expiration... 10 GFE Denial... 10 GFE
More informationSmall Creditor Revisions ATR & QM Requirements
BANKERS COMPLIANCE CONSULTING Small Creditor Revisions ATR & QM Requirements 1 I. Purpose Page 1 2 II. Definitions Page 1 3 III. ATR, QM & HPML Page 2 4 Page 2 1. TILA Small Creditor Designations 5 i.
More informationLoan Comparison Report. Sample
Loan Comparison Report Prepared for: Jonny Williams Date: Prepared by: April 14, 2008 Taylor Abegg Phone: 801-225-4120 E-mail: TJAbegg@EverySingleHome.com Dear Jonny Williams Attached is the Loan Comparison
More informationChange in Circumstance. CIC Instructions and Request Form
Change in Circumstance CIC Instructions and Request Form The following pages show in detail how to complete a CIC with First Community Mortgage. These scenarios are for educational use only. This is not
More informationKentucky STATE HIGH COST/PREDATORY LENDING REGULATIONS Last Updated: 2/22/18 By: RC Coded: 3/1/2018 By: ZB Reviewed: By:
Kentucky STATE HIGH COST/PREDATORY LENDING REGULATIONS Last Updated: 2/22/18 By: RC Coded: 3/1/2018 By: ZB Reviewed: By: LAW: Kentucky Revised Statutes (Kentucky Revised Statutes Chapter 360.100(2)(a-z))
More informationCompliance Update - ACUIA. Presented by:
Compliance Update - ACUIA Presented by: Mike Carter Director of Compliance September 30 th, 2014 Topics Discussion of the CFPB Mortgage Rules TILA/RESPA Rule Flood Insurance CUSO Rule Regulation CC Proposal
More informationGuidance for Completing the 2010 Good Faith Estimate
Guidance for Completing the 2010 Good Faith Estimate Please use this information for assistance when completing the 2010 GFE. Initial accuracy is imperative as it is binding and inaccuracy may result in
More informationThe TRID Process for Wholesale Lending
The TRID Process for Wholesale Lending Michelle McLaughlin 2015 CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS #1820 in most, but not all states.
More informationDodd-Frank Implementation Checklist
Dodd-Frank Implementation Checklist Project Initiation Determine the nature and scope of the project 1. Determine who will be responsible for implementing Dodd-Frank Act compliance requirements, and how
More informationIntroduction to the TILA-RESPA Integrated Disclosure Rule TRID
Introduction to the TILA-RESPA Integrated Disclosure Rule TRID October 3, 2015 Aaron Mason NMLS 54707 Mortgage Loan Officer 859-230-4628 AaronMason@homeserviceslending.com AaronMason.RectorHaydenMortgage.com
More informationMortgage Lending Compliance Issues Session 1. Higher Priced and High-Cost Mortgages
Mortgage Lending Compliance Issues Session 1 Higher Priced and High-Cost Mortgages Today s Topics Learn the definitions of Higher Priced and High Cost Mortgages and how to test to determine if you are
More informationThe WAIT IS OVER. THE ANXIETY BEGINS. New RESPA-TILA Mortgage Disclosure Forms
The WAIT IS OVER. THE ANXIETY BEGINS. New RESPA-TILA Mortgage Disclosure Forms Holly Spencer Bunting K&L Gates LLP 1601 K Street NW Washington, DC 20006 (202) 778-9027 holly.bunting@klgates.com Phillip
More informationReady. Set. know. Understanding TILA-RESPA Integrated Disclosure (TRID)
Ready. Set. know. Understanding TILA-RESPA Integrated Disclosure (TRID) How our competition is handling TRID. Relying on 3rd party vendors to provide material Communicating what we need to know through
More informationSUMMARY ANALYSIS OF HUD S PROPOSED REVISIONS TO ITS RESPA REGULATIONS PREPARED FOR THE AMERICAN LAND TITLE ASSOCIATION
SUMMARY ANALYSIS OF HUD S PROPOSED REVISIONS TO ITS RESPA REGULATIONS PREPARED FOR THE AMERICAN LAND TITLE ASSOCIATION July 30, 2002 Sheldon E. Hochberg Steptoe & Johnson LLP Washington, D.C. 202-429-6218
More informationTexas Administrative Code
Texas Administrative Code TITLE 7 BANKING AND SECURITIES PART 8 JOINT FINANCIAL REGULATORY AGENCIES CHAPTER 153 HOME EQUITY LENDING (Includes amendments effective on January 1, 2018) 153.1 Definitions
More information