[Type text] TILA/RESPA Integrated Disclosure Rule Quick Reference Guide

Transcription

1 [Type text] TILA/RESPA Integrated Disclsure Rule Quick Reference Guide

2 TRID SUMMARY T meet the TILA/RESPA Integrated Disclsure requirements f the Ddd-Frank Wall Street Refrm and Cnsumer Prtectin Act, tw new disclsure frms were designed by the Cnsumer Financial Prtectin Bureau (CFPB). MCFI strngly recmmends Brkers btain E-delivery cnsent frm cnsumers t avid any delays in the lan prcess. The New Frms Lan Estimate (LE) frm replaces the Initial (early) TIL and GFE The LE must be Delivered via e-delivery, in persn r placed in the mail t the cnsumer within 3 business days the Lan Originatr receives the cnsumer s cmplete applicatin (If delivered via regular mail an additinal 3 days must be cunted fr receipt f the LE). Prvides summary f key lan terms and estimates f lan and clsing csts In a case where a brker prvides an errneus disclsure, MCFI is respnsible and may nt issue a revised disclsure crrecting the errr. Clsing Disclsure (CD) frm replaces the Final TIL and HUD-1 Settlement Statement Must be received by cnsumers 3 business days befre cnsummatin (at the time cnsumer becmes cntractually bligated n a credit transactin (the date the NOTE is signed).) Prvides detailed accunting f transactins MCFI is respnsible fr the CD even if prepared by the Settlement Agent Cmpliance Dates Applicatins taken n and after Octber 3, 2015 the new Integrated disclsures will apply Applicatins dated prir t Octber 3, 2015, must be clsed using the current frms (GFE, TIL and HUD-1)

3 TRID Factsheet Lan Estimate Lender Paid Cmpensatin is NOT disclsed n the Lan Estimate Brrwer Paid Cmpensatin is disclsed n the Lan Estimate in Bx A A cnsumer is nt required t sign the Lan Estimate ( Please nte, a signed & dated LE will cnfirm receipt by cnsumer) Fees cannt be charged r cllected until LE is prvided alng with an executed intent t prceed (exceptin credit reprt reasnable fee). A signed Intent t Prceed will be required with the submissin package t MCFI in additin t a Fee Wrksheet cntaining lan fees alng with an executed brrwer signature authrizatin frm, and Service Prvider list. (These are needed in rder fr MCFI t generate a LE) Saturday des NOT cunt as a business day fr the timing f delivery f the LE frm the receipt f an applicatin r valid Change f Circumstance The initial LE must be prvided n less than seven business days prir t cnsummatin. A revised LE must be prvided within 3 business days f Lck Date. A revised LE must be prvided within three business days f knwledge when there is a valid changed circumstance that results in charges t increase mre than is permitted under the rule. The last revised LE must be received n later than fur business days prir t cnsummatin. LE cannt be prvided after the CD has been prvided t the cnsumer(s). Change f Circumstance is needed when a cnsumer indicates an intent t prceed with a transactin mre than 10 business days after the Lan Estimate was riginally prvided

4 TRID Factsheet Clsing Disclsure Must prvide the key mrtgage lan terms, prjected payment amunt scenaris, and csts at clsing MCFI will require the cnsummatin Clsing Disclsure (CD) be signed and dated by all applicants. Revised Clsing Disclsures (CDs) d nt need t be signed, but final Revised Clsing Disclsures (CD) shuld be stamped Final.(if the APR, Lan prduct, prepay did nt change) Saturday DOES cunt as a business day fr the waiting perid between the receipt f the CD and clsing. Changes that require re-disclsure f CD and a new three business day wait perid prir t cnsummatin: Change in the APR utside f the tlerance Change in the Lan prduct (See Prduct field sectin.) Additin f a prepayment penalty Lans with any waived waiting perids will nt be accepted by MCFI.

5 Fee Tlerance Chart Fees That CANNOT Change Creditr Fees Brker Fees Fees paid t an affiliate f creditr/brker Fees paid t an unaffiliated third party if the creditr des nt permit the cnsumer t shp fr the third party service prvider Transfer Taxes Fees That CAN Change (As lng as the riginal estimate was dne in gd faith) Prepaid interest Prperty insurance premiums Amunts placed int escrw (impund) accunts Charges t third party service prviders selected by the cnsumer that were nt n the creditr's service prvider list Charges fr third party services that are nt required by the creditr Fees That Can Increase by 10% Recrding Fees Third Party Fees (as lng as they are nt paid t an affiliate and creditr permitted cnsumer t shp fr third party service prvider)

6 MCFI TRID Prcess Flw 1. Lan Originatr takes 1003 applicatin. The receipt f the fllwing 6 items cnstitutes a cmplete applicatin as f Octber 3, 2015 & a Lan Estimate must be issued within 3 days f the applicatin date: The cnsumer s name The cnsumer s incme The cnsumer s scial security number t btain a credit reprt; The prperty address An estimate f the value f the prperty The mrtgage lan amunt sught. 2. Brker must issue the LOAN ESTIMATE within 3 business days f the applicatin date. 3. After the LOAN ESTIMATE is issued the Brker may prceed after a signed Intent T Prceed dcument is received frm the brrwer(s). Nte: A cnfirmed receipt f the LOAN ESTIMATE is NOT an Intent t Prceed.

7 4. Lan can then be submitted t MCFI fr prcessing. MCFI will review the submitted LOAN ESTIMATE t make sure the LOAN ESTIMATE is cmpleted in the fllwing manner. The LOAN ESTIMATE name shuld be BLANK fr lender name unless the lan is pre-lcked with MCFI. If pre-lcked with MCFI, the LOAN ESTIMATE shuld be in the name f MCFI with the name and address t use n page 1 f the Lan Estimate as: Mega Capital Funding, Inc N. Parkway Calabasas Suite 100., Calabasas, CA On page 3 f the Lan Estimate, Brker clients shuld have MCFI with NMLS # in the lender sectin. The rest may remain blank. Example: Lender: Mega Capital Funding, Inc. NMLS:/License ID:

8 5. Revised Lan Estimates will be issued when specific lan circumstances change, which at that time brker must send in a Change f Circumstance frm t MCFI. 6. Once a file becmes clear t clse, it will prmpt MCFI s clsing department t wrk clsely with the settlement agent t issue the initial Clsing Disclsure t the cnsumer. The CLOSING DISCLOSURE must be received and signed (via electrnic signature) by the brrwer(s) and anyne wh has the right t rescind, 3 business days prir t the cnsummatin t be cmpliant. (Fr Mail bx rule, an additinal 3 day waiting perid will apply) (changes t the Revised CD that effect the APR, Lan prgram r Prepay will require an additinal 3 day waiting perid befre clsing)

9 Clsing Disclsure Delivery Methds Hand Deliver: Disclsures hand delivered will be cnsidered received n the date the cnsumer(s) Signs and dates the disclsure. Mail/Overnight Delivery: Disclsures mailed/vernighted will be cnsidered received n the date the cnsumer(s) sign and date a receipt acknwledging acceptance f the delivery. /E-sign Delivery: MCFI will accept electrnically delivered disclsures as lng as the Brker prvides prf f cmpliance with E-Sign Act s cnsent requirements. MCFI will cnsider the disclsure received early if the Lender prvides dcumentatin f the brrwer s receipt f the disclsure. MCFI will nt accept read receipts as evidence f brrwer receipt f disclsures. Scanned/Fax Delivery: Disclsures scanned/faxed will be cnsidered received n the date the cnsumer(s) faxes the signed and dated dcuments back.

10 Three Day Clsing Disclsure Prec eding Saturday Clsing Date 1 st Mnday 2 nd Tuesday 3 rd Wednesday 4 th Thursday 5 th Friday 6 th Saturda y Disclsures Due with Acknwledgment Electrnic Delivery Hand Delivery 4 th Thursday 5 th Friday 6 th Saturday 7 th Mnday 8 th Tuesday 9 th Wednesday Mail Disclsures 8 th Mnday 9 th Tuesday 10 th Wednesday 11 th Thursday 12 th Friday 13 th Saturday Nte: If a federal hliday falls in the three-day perid, add a day fr disclsure delivery The three-day perid is measured by days, nt hurs. Thus, disclsures must be delivered three days befre cnsummatin, nt 72 hurs. Disclsures may be delivered electrnically n the disclsures due date in cmpliance with E-sign requirements.