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INTEGRATED MORTGAGE DISCLOSURE RULE
H&H Settlement Services, LLC105 E. Glenside Ave, Glenside, PA 19038
215-989-4959
New Terms
• CFPB – Consumer Financial Protection Bureau• TRID – TILA RESPA Integrated Disclosure• LE – Loan Estimate• CD(F) – Closing Disclosure (Form)• Buyer – Consumer• Closing – Consummation
LiabilityDodd-Frank gave power to CFPB to enforce rules and
levy penalties
– CFPB enforcement of consumer financial laws (incl. TILA and RESPA)
– $5,000 per day per violation; $25,000 per day for reckless violations; $1M per day for knowing violations
Scope and DateMajority of closed-end mortgages except:
Reverse mortgages HELOC Mobile homes Commercial loans Creditors making five or fewer loans per year Certain no-interest Subordinate special purpose loans
Most provisions apply to applications received by lender or mortgage broker on and after 10/3/15
Reliance on the Real Estate Professionals Lenders only have 3 days to issue Loan Estimate
Creditor may rely on third parties to obtain information for Loan Estimate: “For example, the creditor might look to ….Realtors for taxes and escrow fees.”
Transfer taxes Seller creditsHome warranties Personal property purchasesHO Association feesHome Owner’s InsuranceFlood Insurance
Change of Circumstance1. Information provided by consumer inaccurate2. Extraordinary event
3. Discovery of new info specific to consumer or transaction
4. Revision requested by consumer5. On day of locking rate6. After 10-day expiration
3-Day Review Period of Closing Disclosure (CD)
Three business days* in advance of consummation** with limited re-
disclosure requirements.
*business day for CD purposes: all days except Sunday and 10 Federal holidays
**consummation is defined as “the time that a consumer becomes contractually obligated on a credit transaction”
Major Lenders’ Decisions
1. Why did they make the decision?2. How will this new process work?3. What about the day of closing changes?
They will face staffing issues for day-of-closing changes:• Volume• 24/7• Consumer Experience
Delivery of Closing Disclosure Defined
Hand delivery: immediate (deliver on Monday, close on Thursday)
US Mail: assumed receipt three days after placed in mail
Email: with receipt confirmed by consumer after approval to use email method of delivery (if not, assumed three days to open email)
Overnight Delivery: with consumer confirmed receipt
Delivery Examples
Or emailw/o receipt
Or emailwith receipt
Re-disclosure Requirements
Requiring additional three-day review period1. Inaccurate APR (1/8% or ¼% depending on loan product)
2. Change in loan product3. Prepayment penalty added
Owner’s Title Insurance Modifier
• Requires inclusion of the word “Optional” after Owner’s Title Insurance on Loan Estimate and Closing Disclosure
• Consumer has no protection under the lender’s policy.
• Understand the importance of Owner’s Title
Seller Closing Disclosure
Seller provided Closing Disclosure by settlement agent, escrow company, attorney agent at consummation.
Nothing prohibits settlement agent, escrow company, attorney agent from creating a separate form for seller purposes only
The CLOSING DISCLOSURE(CD)
Closing Disclosure
FormPage 1
©2015 ORNTIC
Closing Disclosure
FormPage 2
©2015 ORNTIC
Closing Disclosure
FormPage 3
Similar to HUD1Page 1 w/o line #s
©2015 ORNTIC
18
Closing Disclosure Page 4
© 2015 ORNTIC
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Closing Disclosure Page 5
© 2015 ORNTIC
ALTA Settlement StatEment
©2015 ORNTIC
ALTA SettlementSheet – CombinedPage 1
©2015 ORNTIC
ALTA Settlement Sheet - CombinedPage 2
©2015 ORNTIC
ALTA SettlementStatement – CombinedPage 3
SELLER-ONLY CLOSING DISCLOSURE
Bifurcation Benefits
• Allows agent to control preparation of the seller’s side
• Allows agent to make changes at the table for seller-only adjustments
• Protects NPPI of the consumer and seller
26
Page 1
©2015 ORNTIC
Seller Only Closing
DisclosurePage 1
27
Bifurcated Seller form
Page 2
Seller Only Closing
DisclosurePage 2
©2015 ORNTIC
What can we do today• Create a system to communicate changes or
additional fees• Create a system to deliver invoices 8-10 days
prior to closing• Talk to your buyers about responding to
lender requests immediately• Talk to your staff about responding to lender
requests immediately
THANK YOU!
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