TRID: One Month Later

What do we know now?Example of processing timeline.

7 questions a Realtor must ask the lender.What fee changes could delay closing?

So, what does the Closing Disclosure Process Look Like?

Any new applications as of 10/3/2015 will have the Closing

Disclosure (CD) instead of the HUD-1 settlement statement at closing

Example of Hallmark Home Mortgage Loan Process Timeline…

PrequalificationHallmark’s Loan Originator

completes the borrower’s application and

gathers initial documents to issue preapproval

If unable to render a decision on his/her own

the Loan Originator submits the file for

Deal Structure and Underwriter review.

E-CONSENT IS ALSO REQUESTED AT THIS TIME

Day 1Our Loan Originator completes final

application and gathers necessary documents from the Real Estate Agent and updated documentation from the borrower and

submits the loan to Case Opening/Processing

The appraisal is ordered

Days 3 – 6The file is sent to underwriting at the

beginning of the loan process. An initial underwriting decision is rendered and the

customer is contacted regarding any outstanding conditions

Days 7 – 19The file is processed. Appraisal, Title, and

verifications are completed.

Example of Hallmark Home Mortgage Loan Process Timeline…

Day 20 -21Processing returns file to underwriter for a

final underwrite.

Day 22Processor validates all information on the file is still accurate and final audit is performed.

File is now clear to close.

Days 23 -26The closing department prepares the Closing Disclosure and sends to borrower(s) at least 3

days prior to closing date.Loan Originator or Assistant will confirm

receipt with Borrower’s Agent.

Days 27 -29Borrower(s) review(s) Closing Disclosure.

Hallmark confirms with title company that all parties have reviewed and approved the Settlement Statement/CD. As a standard

practice Realtor should receive settlement statement from title company at this time.

Day 30

LOAN CLOSING

The 7 questions every lender must answer

1. When do you order the appraisal? 2. Who will prepare the closing disclosure (CD)? 3. Who will deliver the CD? 4. How will the CD be delivered? (e-delivered, mailed, hand

delivered) 5. When will the CD be delivered to borrower? 6. Will you confirm with me that buyer has received the CD?7. Will there be any closing delays if non-APR changes need to be

made to the CD after proof of borrower receipt?

What changes would delay the closing from Lender’s perspective?

• If the APR increases by .125% on the final Closing Disclosure compared to the preliminary CD, if loan program changes or if the lender adds a pre-payment penalty.

• What is the APR (Annual Percentage Rate)?– The annual cost of a loan to a borrower. Like an

interest rate, the APR is expressed as a percentage of the loan amount. Unlike an interest rate, however, it includes other charges or fees to reflect the total cost of the loan.

• What can cause the APR to change?– Loan Origination Fee

– Loan Discount Points (Buyer)

– Prepaid Interest

– Mortgage Insurance Premiums

– Title company closing fee

– Document Preparation Fees

– Tax Service Fee

– Courier Fees (if lender required)

What changes could delay the closing from Lender’s perspective?

• What would NOT cause the APR to change?– Inspections being added to the CD

– Repair costs being added to the CD

– Home warranty

– Appraisal re-inspection fees

– Home owners insurance change

– Property taxes

– Real estate commissions

– Fees for title examination, abstract of title, title insurance, property survey

What changes would NOT delay the closing from Lender’s perspective?

Questions?