TRID 2015

CO MP L I A

N C E DE PARTM

EN T PR OC E SS

So When do I have an application under TRID? When you have SPINAL

Social Security Number

Property Address

Income

Name of Borrower

An Estimate of Value

Loan Amount

“APPLICATION”

What is the term “Application” mean in the TRID world? Different than the ECOA or HMDA application definition When you have an application under TRID, this triggers your

disclosure requirement. The application date will match the date the LO signs the 1003. When you have an ECOA or HMDA application you have notification

and data collection requirements. Different application types mean different required acts on your

part.

IMPORTANT DEFINITIONSGeneral Business Days Monday to Friday, except federal and state holidays Saturdays do NOT count Important for the Loan EstimateSpecific Business Days (concerning the CD – you will not need

to use) Every day except Sunday and federal and state holidays Saturdays DO count Important for the Closing Disclosure

TRID TIMING, DELIVERY & ACKNOWLEDGEMENT REQUIREMENTS

The Loan Estimate Remember, the Loan Estimate (“LE”) combines the initial GFE and

initial TIL The rules are the SAME Must be issued within three (3) general business days (Saturday does

NOT count) of receipt of SPINAL

TRID TIMING, DELIVERY & ACKNOWLEDGEMENT REQUIREMENTS

Revised LE’s These are Change of Circumstances Must be issued within three (3) general business days after receipt of

sufficient data to establish a COC IMPORTANT – Once a Closing Disclosure has been issued – no further

LE’s can be issued. Ever. Period.

CHANGES IN CIRCUMSTANCEUnder the new TRID rules, we may only re-issue the LE or CD if there is a change of circumstance in one of 6 categories. Those 6 categories are easily remembered using

Borrower requested – this is self explanatoryExpired LE – if 10 general business days have elapsed since we issued

the initial LEEligibility – if we have new or different facts regarding the loan

impacting eligibilityRates – any rate lock or changeSettlement charge – if we have new or different facts regarding the

loan impacting settlement charges+ New Construction with delayed signing

THE NEW SSPL General Requirement the Lender must provide the borrower with a list of Settlement Service

provider if the Lender permits the borrower to shop for any required service.

Timing Requirement Within 3 days of an application (see SPINAL)

Content Lender must provide at least one provider for each required service for

which the borrower is allowed to shop. Each provider must actually be available. Sufficient contact info must be provided and the Lender must state the borrower may shop for the service. An estimate of the fee must be provided.

THE NEW SSPL

INTERPRETING & EXPLAINING THE LE

Loan Costs – Services the Borrower Can Shop For

Defined as those costs or fees we require provided by a third party and which we allow the borrower to shop for. These providers will be listed on the SSPL.

HOW TO USE BYTE

WITH

TRID

S T E P BY S

T E P GU I D

E ON C

O M P L I AN C E C

H E C K

APPLICATION DATE Check the Application Date to ensure you are in the right state of

mind...

TRID vs. TILA/RESPA

S…P…I…N…A…L… • Show field history for all points of the application to ensure

the application date and the LO signature date are correct…

• S (social security (s))

• P (property address)

• I (income)

• N (name of borrower(s))

• A (an estimate of value)

• L (loan amount)

1003 (INITIAL)• LO signature date must match the dates SPINAL is fully

executed • If the application method is Face to Face (F2F) the LO

signature date and the borrower signature date must reflect the same date

• If the application method is anything other than F2F, the borrower is not required to sign the initial 1003. However, the LO signature and signature date is ALWAYS required upon initial submission.

• The LO who is claiming the transaction must have an NMLS uploaded in the system showing a current license is obtained and, if name is not exact, they must add name to their AKA section.

HOME SCREEN • Please verify Scheduled Closing Date and Signing date are

populated into Byte

INITIAL DISCLOSURES • Initial LE, SSPL, Intent to Proceed, and other disclosures,

will all need to be within 3 business days of the application date (when all 6 pieces of SPINAL was obtained).

• See registration checklist for all required documentation.

SETTLEMENT SERVICE PROVIDERS LIST (SSPL)

• The Loan Estimate (LE), SSPL, and the Purchasing Contract must be compared to ensure all fees were disclosed upon initial disclosure to the borrower.

• Box “C” on the LE (Services You Can Shop For) should reflect all fees listed on the SSPL. As of right now the misc Title fees are not required to be on the SSPL..

• On a Purchase: Lenders Policy, Owners Policy, Escrow Company, and any additional inspection companies (Purchase Contract or program requirement) must also be disclosed as a settlement service provider.

• On a REFI: Lenders Policy, Escrow Company, and any additional inspection companies (Purchase Contract or program requirement) must also be disclosed as a settlement service provider.

INTENT TO PROCEED• This document needs to be received within 10 days of the

disclosues being sent to the borrower. • If received after 10 days, a Letter Of Explanation and a revised LE

will be produced by the branch. • Intent to Proceed date on LE page 1 must be populated with

the date the borrower gave permission to move forward on the loan.

IMPORTANT: The date entered depends on how you sent the disclosures

Please see next page for further instruction on the Intent To Proceed

LOAN ESTIMATE (LE) – PAGE 1 • Intent To Proceed (ITP) date must be populated with the

correct date before the file may move forward. • If the date is before the initial disclosure ITP, they may have

received an email from the borrower with ITP. Check LOE’s to verify you have this email. Date on the email must match the ITP date in Byte.

• If no LOE for the ITP and the dates still do not match, reach out to FOLByteSupport@pcmloan.com

• The date ITP date on LE page 1 is the date the branch has the ability to order an appraisal.

LOAN ESTIMATE (LE) – PAGE 1 • When an LE is sent out to the borrower, Byte will

automatically log the disclosure.

• By double clicking the logged disclosure you are able to add additional details.

LOAN ESTIMATE (LE) – PAGE 1 • Every time an LE is logged, the branch must go into the

disclosure history and manually input the “method” and “received date”.

• Please ensure these fields are completed on every logged disclosure.

LOAN ESTIMATE (LE) – PAGE 1 • Take note of the escrow waiver to ensure the branch

completed the escrow information correctly… The loan referenced in the photo below is not waiving escrow fees.. Therefore, there will be escrow fees tied into the loan.

LOAN ESTIMATE (LE) – PAGE 1 • We still have important dates! • The field below is easy to miss, so please make sure it is completed

on ALL loans.

• Lock Exp. – this field will only populate if the loan is locked. The date will reflect the lock expiration date.

• Fees Expire – this field will be 10 days following the initial LE is sent out.

• If there are no dates in these sections please send an email immediately to FOLByteSupport@pcmloan.com.

LOAN ESTIMATE (LE) – PAGE 1 • By clicking on the “In escrow?” link, you will be able to see

if the loan, does indeed, have escrow fees, or if the branch waived them.

CHANGE OF CIRCUMSTANCE (COC’S)• Remember, TRID is more strict on when you have a valid

COC. So please make sure you are well educated on what the valid circumstances are for a revised LE.

• B (Borrowers Request)• E (Expired LE – after 10 days of previous)• E (Eligibility)• R (Rates)• S (Settlement Charges)+• N (New Construction – with delayed signing)

CHANGE OF CIRCUMSTANCE (COC’S)• At this point, COC Forms are still a mandatory form for

EVERY Change of Circumstance. • If an inspection was added to a COC/LE, you will need to

verify it was not needed upon initial disclosure and was, in fact, a valid COC. • This could be borrower request • Eligibility • Or the U/W discretion

• All LE and revised LE’s will need thorough checks to verify only valid fee’s changed from one to the other.

MDIA ACTION LOG With the new TRID rules, we are requiring the branch to upload an MDIA Action Log. This log will guarantee the branch sent their disclosures or re-disclosures through DocMagic. Any missing MDIA Action Log will need to be questioned and sent to FOLByteSupport@pcmloan.com for a thorough check as to if the file is good to move forward or if the loan will need to be re-originated. • The MDIA Action Log will be indexed under “MDIA Action Log” • Check all of these and match up to the correct disclosure/re-

disclosures to ensure you have all sets.

ONCE COMPLETE WITH REVIEW… • Follow all of the steps you would normally still complete on

a file… • There is an added piece to inform other departments of an

LE review… • After review of all LE’s in the file, place the following into

the conversation log… This needs to be separate from your

“complete/incomplete” email.• ICR stands for “Initial Compliance Review”• Complete (you have completed the review)• Not locked / locked (is the loan locked?• In notes you will place the LE’s that you reviewed…

QUESTIONS?