Change in Circumstance. CIC Instructions and Request Form

Transcription

1 Change in Circumstance CIC Instructions and Request Form

2 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 legal advice. Always refer to your institutions regulator or legal counsel. Information contained in this publication was created using multiple public sources and private individuals. It is intended for informational purposes only and represents accurate information to the best of our knowledge.

3 The following slides show the RESPA Change in Circumstance Request Form Request to Issue a Revised GFE This is to be ed to compliance@fcmpartners.com Date: Loan Originator: Company Name Borrower/Loan Number: (Check Applicable boxes below) The undersigned has received a request from the Borrower (s) for a change in loan terms. Description of Borrower request: Date of the Borrower (s) request: The undersigned has obtained and attached/submitted information regarding the Borrower s loan which will result in a changed circumstance under RESPA section Changed circumstances as defined in are: (1) Acts of God, war, disaster, or other emergency; (2) 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, which information may include information about the credit quality of the borrower, the amount of the loan, the estimated value of the property, or any other information that was used in providing the GFE; (3) New information particular to the borrower or transaction that was not relied on in providing the GFE; or (4) Other circumstances that are particular to the borrower or transaction, including boundary disputes, the need for flood insurance, or environmental problems.

4 Description of changed circumstance: (Examples: Lock Extension, Loan Amount change, subject property value change, credit profile change, etc.): Loan Amount Change: Current total loan amount: $ New total loan amount $ Fees Changing as a Result of the Changed Circumstance Fee Description Amount of Fee Disclosed Amount of Fee on Initial GFE based on Change of Circumstance $ $ $ $ $ $ Origination Fee Summary: Block 1: Block 1: Current: Block 2: Proposed: Block 2: Line A: Line A:

5 Date Loan Originator was informed of the Change of Circumstance: Name: Loan Originator Signature Date REQUEST TO: FCM use only: Date CIC Occurred: CIC request approved by: Date of GFE Re-Disclosure: Approval date: Rev. 4/30/2011

6 The following slides show Change in Circumstances Instructions Remember Block 1 can never increase unless you have an approved change in circumstance for 1 of the following: loan amount increase or program change CIC s must be requested within 3 business days of finding out about the change in circumstance if the CIC is submitted outside the 3 day tolerance they are subject to being denied LOCK EVENTS all lock events (including extensions and escrow waivers) require a CIC to be submitted and approved within 3 days of the lock event (unless the loan is locked at or prior to GFE being issued) If the lender paid loan origination fee decreased please note on the CIC Note if the borrower credit is decreasing(for rate extension or escrow waiver etc.) Important dates section will change once CIC has been approved for lock event Important date line 1,3 and 4 must always be updated to show correct info

7 Send all CIC requests to DO NOT upload to image flow Make sure the CIC is complete and accurate and includes borrower name and loan # Make sure you submit any supporting documentation for approval of CIC (ie: appraisal showing subject to, lock confirmation, initially disclosed GFE, amended purchase contract, turn down from u/w to show product change, updated payoff) Make sure the revised fees on the CIC have been calculated properly based off new info If loan amount is changing, please note the old loan amount vs. new loan amount (there is a section for this) on CIC as well as UFMIP changes LO to sign/date CIC Anything that is an actual borrower fee associated with loan must be disclosed on GFE regardless if seller is paying seller credit is now a lump sum on page 1 of hud so all borrower fees must be disclosed We can no longer submit, approve and re-disclose a CIC/GFE the same day of closing the borrower must have at least 24 hours to review redisclosed docs

8 Re-disclosing the GFE only has a 1 day waiting period unless the TIL goes up or down by more than.125 and then the loan is subject to TILA waiting period If your credit changes you will need to send in an updated MBFA with your CIC request DO NOT disclose GFE prior to receiving CIC approval from compliance desk There is a section on the CIC form that has an origination summary. This is to show how block 1, block 2 and line A currently are and what you are proposing block 1, block 2 and line a will look like with the approved CIC Block 1 consists of the following: depending on the choice of the borrower for their compensation and the rate chosen (at PAR, below PAR, above PAR): any lender paid compensation plus FCM u/w fee or an borrower paid compensation plus FCM u/w fee Block 2 consists of the following: depending on the choice of the borrower and the rate chosen (at PAR, below PAR, above PAR): lender paid compensation credit, discount for below PAR pricing, premium pricing credit for above PAR pricing, fees for extension fee and escrow waiver will be taken out of the credit shown in block 2.