RID) Disc losure s (T Co mplia nc e Ove rvie w T RI D Ba c kg - PowerPoint PPT Presentation

T IL A/ RE SPA Inte g ra te d RID) Disc losure s (T Co mplia nc e Ove rvie w

T RI D Ba c kg ro und • Se c tio n 1032 (f) o f the Do dd-F ra nk Ac t re q uire d the CF PB (Co nsume r F ina nc ia l Pro te c tio n Bure a u) to de ve lo p a se t o f c o mb ine d disc lo sure s tha t re pla c e the c urre nt GF E , HUD-1, a nd initia l a nd fina l T I L disc lo sure s. • Ne w disc lo sure s will b e e ffe c tive with a ll ne w a pplic a tio ns b e g inning o n Sa turda y, 10/ 03/ 2015.

T RI D’ s Purpo se T he ne w disc lo sure s a re de sig ne d to b e • he lpful to c o nsume rs in unde rsta nding ke y fe a ture s, c o sts, a nd risks o f the mo rtg a g e lo a n the y a re c ho o sing . T he fo rms use c le a r la ng ua g e a nd • de sig n to ma ke ke y info rma tio n, suc h a s inte re st ra te , mo nthly pa yme nt, a nd c o st to c lo se , e a sie r fo r c o nsume rs to lo c a te .

Co ve re d T ra nsa c tio ns • T he T RI D rule a pplie s to mo st c lo se d-e nd c o nsume r c re dit tra nsa c tio ns se c ure d b y re a l pro pe rty. • Ce rta in type s o f lo a ns tha t a re c urre ntly sub je c t to T I L A, b ut no t RE SPA, a re sub je c t to T RI D disc lo sure re q uire me nts inc luding : – Co nstruc tio n-Only lo a ns – L o a ns se c ure d b y va c a nt la nd o r b y 25+ a c re s – T ime sha re lo a ns a lso ha ve a b b re via te d disc lo sure time line s

E xe mptio ns • T RI D do e s no t a pply to the fo llo wing : – HE L OC’ s – Re ve rse Mo rtg a g e s – Mo rtg a g e s se c ure d b y Cha tte l, suc h a s mo b ile ho me s o r o the r dwe lling s tha t a re no t c o nside re d re a l pro pe rty – Pe rso ns tha t ma ke five o r fe we r lo a ns pe r ye a r

E xe mptio ns Co nt’ d. • L oans that ar e not c ove r e d by the ne w r ule ar e still c ove r e d unde r c ur r e nt disc losur e r e quir e me nts.

T HE L OAN E ST IMAT E (L E )

L o a n E stima te Purpo se • Re pla c e s the c urre nt Go o d F a ith E stima te a nd initia l T ruth-in-L e nding disc lo sure s

Pro viding the L o a n E stima te • T he le nde r must de live r o r pla c e the L o a n E stima te in the ma il within 3 b usine ss da ys a fte r re c e ipt o f a pplic a tio n, unle ss it is de nie d o r withdra wn within tha t time fra me • T he c o nsume r is c o nside re d to ha ve re c e ive d the disc lo sure s 3 b usine ss da ys a fte r the y a re se nt o r pla c e d in the ma il. T his is c a lle d the “ma ilb o x rule ” – L e nde rs ma y c o nside r using UPS/ F e dE x de live ry o r E -Sig na ture

Pro viding the L o a n E stima te • A re vise d e stima te c a nno t b e issue d le ss tha n 4 b usine ss da ys prio r to c o nsumma tio n • Mo rtg a g e Bro ke rs who re c e ive a n a pplic a tio n must wo rk with the c re dito r to e nsure tha t the L o a n E stima te is pro vide d in a c c o rda nc e with the rule .

Cha ng e I n Va ria nc e s

L o a n E stima te Cha ng e s in Circ umsta nc e • T o re vise the L o a n E stima te , a le nde r must pro vide a re vise d ve rsio n to the b o rro we r within 3 b usine ss da ys o f the info rma tio n re c e ive d to wa rra nt the c ha ng e .

L o a n E stima te Cha ng e s in Circ umsta nc e T he fo llo wing a re the a llo wa b le c ha ng e d c irc umsta nc e s fo r re -disc lo sure : An e xtra o rdina ry e ve nt o utside o f c o ntro l o f a n • inte re ste d pa rty I nfo rma tio n the L e nde r re lie d o n is ina c c ura te o r • c ha ng e s Ne w info rma tio n is disc o ve re d b y the L e nde r • a fte r disc lo sure s ha ve b e e n se nt Cha ng e s a ffe c ting e lig ib ility suc h a s inc o me • de c re a se s, e mplo yme nt c ha ng e s, lo w a ppra ise d va lue , e tc . Co nsume r re q ue ste d c ha ng e s •

L o a n E stima te Cha ng e s in Circ umsta nc e Allo wa b le c ha ng e d c irc umsta nc e s fo r re -disc lo sure (c o nt’ d): I nte re st ra te de pe nde nt c ha ng e s suc h a s ra te lo c k • E xpira tio n, suc h a s c o nsume r do e sn’ t pro vide • inte nt to pro c e e d within 10 b usine ss da ys o f disc lo sure s De la ye d se ttle me nt o n a c o nstruc tio n lo a n-Whe n • se ttle me nt will o c c ur mo re tha n 60 da ys a fte r initia l disc lo sure , a nd re -disc lo sure o c c urs a t le a st 60 da ys b e fo re se ttle me nt

L o a n E stima te L ist o f Se rvic e Pro vide rs • L e nde rs must no w disc lo se the fo llo wing info rma tio n fo r a ll tra nsa c tio n se rvic e pro vide rs, whe the r the c o nsume r c a n sho p fo r the se rvic e OR no t:  Na me o f e a c h se rvic e  E stima te d c o st  Pro vide r o f the se rvic e  Pro vide r’ s c o nta c t info rma tio n

E xample loan e stimate

L o a n E stima te -T o ta l I nte re st Pe rc e nta g e (T I P) • Pa g e 3 o f the L E , the T I P re pla c e s the T o ta l Pa yme nts fro m the c urre nt initia l T I L • T his fig ure use d to b e e xpre sse d in a la rg e $ a mo unt; no w a la rg e % ra te • L e nde rs will ne e d to b e a b le to unde rsta nd a nd disc uss this fie ld with b o rro we rs a s q ue stio ns a rise (Amo unt o f inte re st pa id in ve rsus princ ipa l if b uye r ne ve r a pplie s e xtra to wa rd princ ipa l re duc tio n)

T HE CL OSING DISCL OSURE (CD)

Clo sing Disc lo sure Purpo se • T his fo rm re pla c e s the c urre nt HUD-1 a nd fina l T I L disc lo sure s

Clo sing Disc lo sure L e nde rs must pro vide a nd the b o rro we r must ha ve • D a Clo sing Disc lo sure no le ss tha n 3 RE CE IVE b usine ss da ys prio r to c o nsumma tio n o f the tra nsa c tio n F o r the c lo sing disc lo sure , a “b usine ss da y” is • de fine d a s a ll c a le nda r da ys e xc e pt Sunda y o r F e de ra l ho lida ys. T he CD c a n b e de live re d in pe rso n, e le c tro nic a lly, • po sta l ma il, o r c o urie r I f it is ma ile d o r e ma ile d (fo r tho se witho ut E - • Sig na ture ), the de live ry fa lls unde r the “ma ilb o x rule ” I f multiple pa rtie s a re invo lve d in va rio us lo c a tio ns, • a ll pa rtie s must me e t the 3 da y re q uire me nt

Clo sing Disc lo sure • L e nde rs ma y a lso c o ntra c t with se ttle me nt a g e nts o r do c pre p c o mpa nie s to pro vide the Clo sing Disc lo sure . Ho we ve r, the le nde r is still re spo nsib le fo r the time line ss a nd a c c ura c y o f the disc lo sure . • T he se ttle me nt a g e nt is re spo nsib le unde r the Rule fo r pre pa ring a nd de live ring the se lle r’ s Clo sing Disc lo sure

Clo sing Disc lo sure • A NE W 3-da y pe rio d is re q uire d fo r a re vise d Clo sing Disc lo sure if a ny c irc umsta nc e s tha t fa ll unde r “T he Big 3” o c c ur:  APR inc re a se s b y de fine d thre sho lds (.125 OR 1/ 8)  Cha ng e in lo a n pro duc t  Cha ng e in pre -pa yme nt pe na lty in tha t o ne is impo se d Ame ndme nts ar e allowe d for all othe r r e visions!

Clo sing Disc lo sure • Po st-c o nsumma tio n e ve nts o r c le ric a l e rro rs c a n a lso re q uire the issua nc e o f a re vise d Clo sing Disc lo sure • T he re visio n must b e issue d within 30 da ys o f le a rning o f the ne e d fo r the c ha ng e . Cle ric a l e rro rs ONL Y ma y b e re - disc lo se d within 60 da ys. • Any po st-c lo sing issua nc e o f e xc e ss to le ra nc e re funds must b e a c c o mpa nie d b y a re vise d Clo sing Disc lo sure a nd b e c o mple te d within 60 da ys

E xample Closing Disc losur e

Ne w L e nding Disc lo sure T ime line

I mpo rta nt Site s CF PB De dic a te d Re g ula to ry I mple me nta tio n • We b site : http:/ / www.c o nsume rfina nc e .g o v/ re g ula to ry- imple me nta tio n/ tila -re spa / -Co mplia nc e Guide -F o rms Guide -We b ina rs -T ime line I llustra tio ns e Re g ula tio ns T o o l: • http:/ / www.c o nsume rfina nc e .g o v/ e re g ula tio ns

T ra ining s fo r Sta ff • https:/ / www.mg ic .c o m/ tra ining / inde x.html T RID: T IL A RE SPA Inte gr ate d Disc losur e We binar — A Spe c ial We binar with David L una of Mor tgage E duc ator s and Complianc e • http:/ / www.c o nsume rfina nc e .g o v/ re g ula to ry- imple me nta tio n/ tila -re spa / Sc r oll to VIDE OS se c tion. - Ove r vie w of the Rule - L oan E stimate - Closing Disc losur e

T ra ining s fo r Re a lto rs http:/ / trutha b o uttrid.c o m/ ma in-pa g e Sho rt vide o to sho w yo ur lo c a l re a lto rs tha t sums up ho w T RI D c ha ng e s the wa y the ir b usine ss will lo o k.

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