A Credit Union Primer How we can serve REALTORS and their clients - - PowerPoint PPT Presentation
A Credit Union Primer How we can serve REALTORS and their clients Power Lunch Agenda About Credit Unions About American Eagle Financial CU Mortgage Lending at American Eagle TILA / RESPA Integrated Disclosure (TRID) Questions
How we can serve REALTORS and their clients
American Eagle Financial Credit Union 2
American Eagle Financial Credit Union 3
American Eagle Financial Credit Union 4
Not-for- profit
Cooperative Member Owned
Better Rates Lower Fees
Volunteer Directors Common Bond
American Eagle Federal Credit Union 5
American Eagle Financial Credit Union 6
American Eagle Financial Credit Union 7
Differences between state and federally chartered credit unions are less significant than the difference between credit unions and banks.
American Eagle Financial Credit Union 8
American Eagle Financial Credit Union 9
American Eagle Financial Credit Union 10
American Eagle Financial Credit Union 11
(spouse, children, parents, siblings, and grandparents)
American Eagle Federal Credit Union 12
American Eagle Financial Credit Union 13
NMLS# 555694
americaneagle.org americaneagle.mortgagewebcenter.com
American Eagle Financial Credit Union 14
American Eagle Financial Credit Union 15
Member Resources
American Eagle Federal Credit Union 16
AEFCU Member
Decisioning
Processing
Funding & Closing
Servicing Origination
American Eagle Financial Credit Union 17
American Eagle Financial Credit Union 18
American Eagle Financial Credit Union 19
MI remains in place for a minimum of two years. After two years of timely mortgage payments and proof that the loan balance is less than 78% of the value, the borrower may request termination of mortgage insurance.
American Eagle Financial Credit Union 20
American Eagle Financial Credit Union 21
American Eagle Financial Credit Union 22
jhershman@bhhlegal.com Baillie and Hershman, PC 290 Highland Avenue Cheshire, CT www.bhhlegal.com 230.272.7000
jtrinh@bhhlegal.com
jfries@bhhlegal.com
The CFPB, TRID, and YOU
Dodd-Frank Mandates:
Created the Consumer Financial Protection Bureau
Replaced existing RESPA and TILA disclosures with a single disclosure to include information previously contained in two separate ones
Proposed Rule - Issued: 7/9/12
Final Rule - Issued: 11/20/13
Implementation Date: NOW 10/3/15 (Maybe)
CFPB invested heavily in consumer research
Affects any purchase for a home (except ones not attached to land, a mobile home, or a HELOC) where a loan application is taken on or after October 3, 2015 by a creditor
TRID= TILA/RESPA Integrated Disclosure Impact will be felt by everyone in the closing process
Buyers, Sellers, Realtors, Lenders, Mortgage Brokers
Authority to assess fines
Tier 1- $5,000 a day Tier 2- Reckless violation- up to $25,000 a day Tier 3- Knowing Violation- up to $1 million a day
1) New “Loan Estimate” (LE) Replaces current GFE and initial TIL Three pages long Must be sent to the buyer no later than 3
business days AFTER making a loan application
Replaces current HUD-1 and final TIL Five pages long Must be received by the buyer 3 days PRIOR to
closing
Usually provided by lender or mortgage broker Must be Delivered or placed in mail within 3
“business days” of application (incl. Saturday if Lender open) and no later than 7 days prior to consummation ie when the buyer becomes contractually obligated on the loan
Waiver of timing requirement is possible, but
emergency’ in order to waive the requirement
(a) General Information
(b) Loan Terms
If answers to questions in this section were “YES” different information would be provided
(c) Projected Payments
Includes payment schedule & estimated taxes, insurance & assessments
(a) General Information
(b) Loan Terms
If answers to questions in this section were “YES” different information would be provided
(c) Projected Payments
Includes payment schedule & estimated taxes, insurance & assessments
(d) Costs at Closing (e) Website reference Statement about & link to CFPB website
(f) Loan Costs (g) Other Costs
Taxes, insurance,
credits
(h) Calculating Cash to
Close
Downpayment adjustments
Adjustable Payment
(AP)Table*
(j) Adjustable Interest
Rate (AIR) Table*
(k) Contact Information
Broker Loan officer
(l) Comparisons (m) Other Considerations (n) Signature Statement
Signatures not required Different statements
required depending on whether signature line is or is not included.
Replaces the HUD-1 and final TIL Must be received 3 business days prior to
consummation
Provided by Lender or lender’s settlement agent, but Lender
remains responsible for the accuracy of the CD
(a) General Information (b) Loan Terms (c) Projected Payments (d) Costs at Closing
(f) Loan Costs
Origination Charges Services Borrower Did
Not Shop For
Services Borrower Did
Shop For
Total Loan Costs
g) Other Costs
F . Prepaids:
01. Homeowner’s Ins.
Premium
02. Mortgage Ins.
Premium
03. Prepaid Interest 04. Property Taxes
01. HOA Capital
Contribution
05. Real Estate
Commission
06. Real Estate
Commission
07. Title - Owners title
(h) Total Closing Costs
(i) Calculating Cash to
Close
Tolerance amounts
shown here
(j) Summary of
borrower’s transaction
(k) Summary of seller’s
transaction
Itemizations in I and J
are like page 1 of today’s HUD-1 Settlement Statement
(l) Loan Disclosures (m) Adjustable Payment (AP) Table* (n) Adjustable Interest Rate (AIR) Table* * Tables are only included if applicable
(o) Loan Calculations (p) Other Disclosures (q) Questions Notice
(s) signature location—
note that there is NO place for the seller to sign which is different than today’s HUD-1 (r) Contact Information (Sale)
(B)
(S)
Closing disclosure must be received 3 business days
before “consummation”
If not provided in person (i.e. mailed), add 3
business days for presumed receipt
Consumer may not waive the 3 day waiting period
except in the event of a “Bona Fide Personal Financial Emergency”
Business day includes Saturday whether lender is open
Changes requiring a new 3 business day waiting period Annual percentage rate becomes inaccurate –
most loans 1/8%; certain loans 1/4%
Loan product changed Prepayment penalty added
Section 1026.19(f)(2)(i))
If there is a change to: The loan’s APR: most loans 1/8%; certain loans
1/4%
The loan product ie going from a fixed rate to a
variable rate
An addition of a prepayment penalty
THEN a NEW 3 day waiting period and a revised CD must be provided
If there is a change but it does not fall under the
above 3 categories, then NO new 3 day waiting period is necessary but a revised CD is still provided