TRID Old vs New Comparison of TILA/RESPA Integrated Changes for Real Estate Agents
Old vs New Comparison of the TILA/RESPA Integrated Changes Good Faith Estimate Loan Estimate The GFE and Initial TIL are (GFE) LE Initial TIL Loan Estimate LE Trigger for Initial Loan Estimate Definition of Application Took away the 7 th item. Now just 6 items. Imposing a Fee The difference is now the borrower must indicate an intention to proceed rather than just receive the disclosure. Intention to Proceed Must track when the borrower notifies originator of intent to proceed. The GFE and Initial TIL are Application is the existing trigger for initial disclosures of GFE and Initial TIL and is the same for the Loan Estimate. Address Loan Amount Income Estimated Value Name Social Security Number Cannot impose a fee other than a reasonable fee for a credit report until the borrower has given their intention to proceed with the loan. The borrower can indicate their intention to proceed in any manner. In person, phone, mail, electronically. As soon as you have all 6 items you have an application and have to disclose the Loan Estimate in 3 business days. This means that you can take the credit card number for their credit report but you cannot charge their credit card or hold a postdated check for something like the appraisal until after they have indicated their intention to proceed. It is important to have a system to track when the borrower indicates their intention to proceed.
Old vs New Comparison of the TILA/RESPA Integrated Changes Definition of Consummation A transaction is consummated when the consumer becomes contractually obligated to a creditor. State law prevails so this means follow your state definition of Dry Funding or Escrow States This means consummation is the date of signing. Wet Funding States - This means consummation is the date of funding. Timing of Revised Loan Estimate Final revised Loan Estimate must be RECEIVED by the borrower(s) 4 business days prior to Creditors must be sure to track the timing between final revised Loan Estimate, the Closing and The Received date. The borrower(s) must RECEIVE the Final Revised Loan Estimate 4 business days prior to Once the Closing is generated a revised Loan Estimate cannot be generated. Delivery of Revised Final Loan Estimate Evidence of receipt Can deliver in person, mail or electronically. Timing of date of RECEIPT. Creditors will want to develop a tracking method of receipt. A read receipt by email is not an effective proof for delivery of RECEIPT. Creditors may consider using an electronic delivery method for proof of RECEIPT. If the Revised Loan Estimate is delivered by mail, must add an additional 3 business days for delivery of the LE by mail. The 4 business days begin from the date the creditor has evidence that the borrower has RECEIVED the Final Revised Loan Estimate. HUD-1 Closing The HUD-1 and Final TIL are
Old vs New Comparison of the TILA/RESPA Integrated Changes Final TIL Closing The HUD-1 and Final TIL are Timing of Closing Closing must be RECEIVED 3 business days prior to Currently the borrower can inspect the HUD-1 one day prior to Now, the Closing must be RECEIVED 3 business days prior to 3 Business Day Waiting Period. Delivery of Closing Evidence of receipt Can deliver in person, mail or electronically. Timing of date of RECEIPT. Creditors will want to develop a tracking method of receipt. A read receipt by email is not an effective proof for delivery of RECEIPT. Creditors may consider using an electronic delivery method for proof of RECEIPT. If the Closing is delivered by mail, must add an additional 3 business days for delivery of the CD by mail. The 3 business days begin from the date the creditor has evidence that the borrower has RECEIVED the Closing. Definition of Business Day for Closing This definition is technically not a change. However we listed it as a change because it is important for the timing of the Closing. The definition of business day for providing a Closing and other purposes in the regulations is all calendar days except Sundays and the legal public holidays specified in 5 U.S.C. 6103(a). This is the same definition that we are accustomed to with the 3 day right of rescission period currently used for refinances.
Old vs New Comparison of the TILA/RESPA Integrated Changes Revised Closing New 3 business day waiting period begins only if one of three things happen to the revised Closing. The 3 business day waiting period will only be required if one of the listed triggers occur. There are three changes to disclosures that require a new waiting period They are: 1. If the lender makes changes to the APR greater than 1/8 of a percent for most loans and 1/4 of a percent for loans with irregular payments or periods, 2. Changes to the loan product 3. A prepayment penalty is added to the loan The borrower must receive a new Closing and an additional three business day waiting period after receipt of the new disclosure if one of the items listed occur. If a change does not fall into one of the three areas listed, then a new 3 business day waiting period is not required. However; the borrower still has the right to inspect the Closing one day prior to Real Estate Agent Information on Closing The contact information and real estate commission for both the buyer and seller agent will be listed on the Closing. It is important to inform your real estate partners about the change. Communication is critical for all of the changes in timing, disclosures, etc. especially with your real estate partners. This document is current as of June 25, 2015. This document does not represent legal interpretation, guidance or advice from the any of the sponsors, speakers or promoters, including Go2Training. While efforts have been made to ensure accuracy, this document is not a substitute for the rule. Only the rule and its official Interpretations can provide complete and definitive information regarding requirements. This document does not bind any of the speakers or their companies and does not create rights, benefits, or defenses, substantive or procedural that are enforceable by any party in any manner.