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#1718714 - 07/10/12 08:13 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
MyBrainHurts Offline
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Illinois
I'm just wondering, after 29 years in this biz, how long it's going to take me to stop saying "GFE" or "HUD-1."
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RESPA
#1718726 - 07/10/12 08:28 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
DD Regs Offline
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Somewhere in the middle
Let's think about that Jay, the new Closing Disclsoure needs delivered 3 days before closing. So we have the 3 days in mail, 3 days for review. Ooops loan amount changes, new disclosures, another possible 6 days? (I haven't read this all the way yet, but this is one of my thoughts on what I have read so far).
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#1718727 - 07/10/12 08:32 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
TB 12 Offline
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I agree with you JJ. I think the changes a couple years back fell short (to say the least) of what they wanted to accomplish. All the time to digest it, train, implement and reprogram is down the tubes.

I have the same concerns as DD. We make changes for customers when they are at the table. If they think it is tough now...
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#1718728 - 07/10/12 08:35 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
#Just Jay Offline
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Never said it was perfect, DD.

That said, I look forward to our staff not having to move the world so to speak because borrowers, sellers, realtors, all get into funny little last minute demands and spats and expect the bank to move heaven and earth for them at the last moment. Personally, I think our staff will be happy to say, "sure, we can do that, but you will have to wait X more days to close."

Maybe it will get some of the other players to get their game together in the first place, and not look to the bank to make everything work for them at the last minute at the closing table. smile

And I agree, I think reading it all the way through first and getting a good understanding of it before we go off lambasting it, is a good idea too. wink
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#1718734 - 07/10/12 08:44 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
raitchjay Offline
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I certainly haven't read all the way through it either, but i thought i recalled reading that after delivering the "closing statement" (or whatever they are now calling it), a subsequent need to re-disclose it didn't cause a new 3 day wait.
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#1718741 - 07/10/12 08:55 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
DD Regs Offline
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Somewhere in the middle
I like that thought JJ, "Sure we can do that, you will just need to wait xx days" then maybe all these last minute circus acts will stop.

RJ, I think I read a general statement somewhere but haven't got to the meat yet that certain changes would not delay closings.

Eh, we survived the last RESPA and Z changes and I am sure we will make it through this one too.
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#1718743 - 07/10/12 08:57 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
raitchjay Offline
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I think the last changes (that led to what we have right now with the new GFE, etc.) are the ones that seem a little ridiculous to me now.....if this was coming, why not wait and overhaul all at once, instead of a major overhaul followed by another major overhaul? Oh well.....
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#1718751 - 07/10/12 09:38 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
Truffle Royale Offline

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yea, we survived the last one and will this one too.
We proved that.

But the notion that telling people they'll have to postpone the closing will end the circus doesn't take into account that the messenger is the one most often shot.
If we're BIG BAD BANKS now, what will this new twist make us?

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#1718752 - 07/10/12 09:47 PM Re: RESPA/Reg Z Proposal Is Out raitchjay
Kathleen O. Blanchard Offline

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Originally Posted By: raitchjay
I think the last changes (that led to what we have right now with the new GFE, etc.) are the ones that seem a little ridiculous to me now.....if this was coming, why not wait and overhaul all at once, instead of a major overhaul followed by another major overhaul? Oh well.....


Because that was HUD pre Dodd Frank. It is like completing a major systems implementation or other project at your bank and BAM the bank is sold. Change to new system.
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#1718767 - 07/10/12 10:39 PM Re: RESPA/Reg Z Proposal Is Out raitchjay
Sewanee, CRCM Offline
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Unfortunately, no one knew Dodd-Frank was coming.
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#1718851 - 07/11/12 01:14 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
JobSecurity Offline
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How long does it usually take to get it posted in the Federal Register (I like that format better)? I thought it usually took about one day but I don't see it this morning.

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#1718896 - 07/11/12 02:06 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
RR Joker Offline
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I don't see the proposal on Higher priced mortgage and Home Ownership Counseling either...(I think I got that right!)
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#1718905 - 07/11/12 02:09 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
#Just Jay Offline
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So if a proposal is only 'released' and never published, does it really exist? Hmmm...
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#1719092 - 07/11/12 06:16 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
DD Regs Offline
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Somewhere in the middle
So if a bear fa... oh never mind.
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#1719183 - 07/11/12 09:01 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
Bluesfan57 Offline
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ok, yes i am a noobie, but do they seriously not put a table of contents or some navigational tool in proposals??

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#1719487 - 07/12/12 05:54 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
RR Joker Offline
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The Swamp
nope
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#1719539 - 07/12/12 07:13 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
ahou Offline
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Page 964 - I found this interesting.

ii. Assume a creditor provides a $400 estimate of title fees, which are included in the category of fees which may not increase by more than ten percent for the purposes of determining good faith under 1026.19(e)(3)(ii), except as provided in 1026.19(e)(3)(iv). An unreleased lien is discovered and the title company must perform additional work to release the lien. However, the additional costs amount to only a five percent increase over the sum of all fees included in the category of fees which may not increase by more than ten percent. A changed circumstance has occurred (i.e., new information), but costs have not increased by more than ten percent. Therefore, if the creditor issues revised disclosures, when the disclosures required by 1026.19(f)(1)(i) are delivered, the actual title fees of $500 may not be compared to the revised title fees of $500; they must be compared to the originally estimated title fees of $400.
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#1719568 - 07/12/12 07:46 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
raitchjay Offline
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That is interesting, but logical......keeping unrelated fees tossed into the same bucket from benefiting from a change of circumstance that had nothing to do with the fee in question.
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#1719702 - 07/13/12 03:01 AM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
#Just Jay Offline
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I guess we were not giving enough cash cures back. smirk

Logical possibly, but I see more padding of estimates as an end result. It'll just make initial costs look greater than they will be... doesn't serve the consumer well, and may even put some banks at a further disadvantage from each other.

Regardless, what a processing nightmare fiasco challenge training opportunity this could end up being!

laugh
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#1719787 - 07/13/12 02:18 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
Truffle Royale Offline

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I also see a whole lot more 'violations' occurring from picking and chosing numbers from different GFEs.
That 'training opportunity' that goes 'take all the numbers from the last GFE except any numbers that changed; for those go back to the original GFE' has just turned into my worst nightmare.
Jay's right. Original GFEs will just go out padded to cover any and all increases.

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#1719812 - 07/13/12 02:49 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
MN Banker Offline
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I must have reading comprehension fail, because I don't understand how that's logical. A valid changed circumstance increases costs and are re-disclosed, but we can't use the re-disclosed fees for tolerance calculations? What's the point of re-disclosing then?

Is it saying that the only time we can use the revised disclosure is if the change increased total costs by more than 10%? What if there are multiple changed circumstances where none of them individually added up to a 10% change, but in total they did? We'd be required to provide a tolerance cure even though we re-disclosed, because we'd have to use the original GFE?

My brain hurts already.

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#1719833 - 07/13/12 03:10 PM Re: RESPA/Reg Z Proposal Is Out MN Banker
raitchjay Offline
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OK
Originally Posted By: MN Banker
Is it saying that the only time we can use the revised disclosure is if the change increased total costs by more than 10%?


That's my take on it. But how will that hurt you? It's the total costs "of all fees included in the category of fees which may not increase by more than 10%". If you're within 10%, there's no cure. In the scenario quoted above, where the title work goes from $400 to $500, there must have been within the other quoted numbers enough padding to keep the difference below 10%.....otherwise, according to the part quoted, you would have been able to use the re-issued GFE quote. At least....that's how i'm reading it.

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#1719839 - 07/13/12 03:14 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
raitchjay Offline
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I guess i'm not seeing how this will lead to more padding either......if a changed circumstance puts you above 10%, then that section doesn't apply and you can use the revised GFE numbers in the comparison chart.
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#1719907 - 07/13/12 04:26 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
MN Banker Offline
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Hmm, I guess this is how I'm reading it:

CC1: Scenario described above, title fees increase from $400 to $500. $100 change is only 5% of total, so we must use the $400 to compare at closing.

CC2: After re-disclosure, borrower decides they want to subordinate their 2nd rather than pay it off, so now we have a $150 subordination fee. The $150 is only 7.5% of the total fees, so we have to use the $0 that was on the original GFE.

In my example these are two different re-disclosures as they happened at different times. Because neither of them exceeded the 10% at the time they were re-disclosed we have to use the original amounts to compare at closing. So we have $2000 total fees disclosed, but $2,250 in actual costs. This is a 12.5% increase, so we have a tolerance violation.

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#1719932 - 07/13/12 05:05 PM Re: RESPA/Reg Z Proposal Is Out CalifDreamin
raitchjay Offline
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Well, your scenario does make sense...i hadn't thought of it in that light (nor have i read through that entire section of the proposed rule). I guess let's hope there will be some common sense thrown into the mix for scenarios such as that one. Good insight on your part.
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