tila – respa integrated disclosures (trid) townhall webinar process and tolerances...
TRANSCRIPT
Ark-La-Tex Financial Services, LLC - For internal use only 1
TILA – RESPA Integrated Disclosures (TRID)
Townhall WebinarProcess and Tolerances
03/2015
03/2015 Ark-La-Tex Financial Services, LLC - For internal use only 2
Benchmark Process – Delivery of Closing Disclosure (03/14/2015)
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Loan clear to close
Pre-draw process (including
Compliance Analyzer) /
Prepare Closing Disclosure
Provide figures for pages 2 and 3 of
Closing Disclosure
Send Closing Disclosure to
consumer
Cc: loan originator, processor and settlement agent
Electronic signature and return signed
Closing Disclosure
Prepare closing documents
3-Business Day Waiting Period
(Business day is Monday – Saturday,
excluding federal holidays)
Loan closing· Signing of documents· Obtain authorization
for settlement· Disburse funds
Prepare seller’s Closing Disclosure
Deliver to settlement agent
Confirm receipt to start 3-business
day waiting period
Confirm final title/escrow fees,
prorated taxes, HOA fees, and other fees and
chargesProcess
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Closing Disclosure – Page 2
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Closing Disclosure – Page 3
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ALTA Closing Disclosure Calendar
03/2015
Good Faith Estimate Tolerances (Today)
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Loan Estimate Variances (August 1)
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These charges cannot increase at settlement:
[Zero Tolerance]
• Origination charges, including points and other fees paid to lender or broker (Section A)
• Services paid to affiliate of lender to broker (all Sections)
• Services borrower did not shop for, such as appraisal and credit report (Section B)
• Transfer taxes (Section E.02)
The total of these charges can increase up to 10% at settlement:
[10% Tolerance]
• Services the borrower did shop for if both of the following apply (Section C):• Paid to unaffiliated third party• Consumer either selects provider
on Settlement Service Providers List or does not select any provider
• Recording fees (Section E.01)
These charges can change at settlement:
[No Tolerance Limitation]
• Prepaid interest (Section F)• Homeowners' insurance premium
(Section F)• Initial escrow payment at closing
(Section G)• Required services that you can shop
for - if borrower selects an unaffiliated third party provider not on the Settlement Services providers List (Section C.)
• Charges paid to third party provider for service not required by creditor, such as home warranty fee, HOA fees (Section H)
Ark-La-Tex Financial Services, LLC - For internal use only 8
Loan Estimate and Closing Disclosure
03/2015* Unless affiliated with creditor or broker, then zero tolerance
Settlement Service Providers List
Ark-La-Tex Financial Services, LLC - For internal use only 903/2015
Settlement Service Providers List
• If consumer is permitted to shop, we must provide written list of providers to the consumer
• Must list at least one available settlement service provider for each service
• Providers must correspond to the Loan Estimate, Section C.
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Resetting the 10% tolerance
• Example• Initial Loan Estimate estimates $400 in the
10% bucket• Changed circumstance increases fees by
$20 (5%)• Tolerance is not reset and revised Loan
Estimate is not required• Another changed circumstance increases
fees by $28 (7%)• Combined with earlier change of
circumstance fees increased $48 (12%)• Revised Loan Estimate provided with new
fees of $448 within three business days• Tolerance reset: Fees can increase by
another 10% ($44) before closing
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• You have to cross the threshold:• 10% tolerance is not reset if
changed circumstance increases aggregate total of charges by 10% or less
• You may reissue Loan Estimate but it must be disregarded when testing for compliance with tolerances
• Three-day requirement for reissuing Loan Estimate measured from the event that causes the aggregate increase to exceed 10%
What to do now
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• Talk to your real estate agents and settlement agents
• Flyers in Marketing Machine• More to come
• Tools on Benchmark Portal• ALTA Closing Disclosure Calendar• TIP Explanation• Presentations
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THANK YOU
03/2015