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#2040638 - 09/25/15 05:31 PM
Re: Rate Lock on LE
Cheli
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10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
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The rate lock information on the LE is informative and a piece of the disclosure. It certainly is not a contract. You have to have a rate lock agreement in place to indicate YES to the rate lock question.
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John S. Burnett BankersOnline.com Fighting for Compliance since 1976 Bankers' Threads User #8
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#2043605 - 10/09/15 04:39 PM
Re: Rate Lock on LE
Cheli
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Diamond Poster
Joined: Mar 2013
Posts: 1,265
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We have implemented a written rate lock agreement because of TRID, which means we are re-disclosing on every loan. It would be a perfect storm if the application was complete (6 items) and the borrower signed the rate lock agreement at the same time. So, we are always marking "no" on the initial LE, then turning around and sending out an LE with 'yes'. Is this what the CFPB intended??
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#2043684 - 10/09/15 07:58 PM
Re: Rate Lock on LE
Cheli
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Diamond Poster
Joined: Mar 2013
Posts: 1,265
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Truffle - We sell most of our loans on the secondary market, so the rate could be locked between us and the investor at the time the initial LE is provided. However, the borrower has not yet returned the signed rate lock agreement, so we have to mark 'no'.....then they return the signed agreement on the 4th day after application, so we have to re-disclose with 'yes'. Two LEs within 2 days. Ugh.
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#2043821 - 10/13/15 12:43 PM
Re: Rate Lock on LE
Cheli
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10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
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Clarification: When it comes to E-SIGN, remember that the receiving party is the one that needs to provide consent for electrons to replace paper and ink. Because you are not a consumer, you can simply agree to accept an electronic message. The much-discussed E-SIGN "dance" with demonstrable consent is only required when a consumer is agreeing to accept "written" documents in electronic form.
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John S. Burnett BankersOnline.com Fighting for Compliance since 1976 Bankers' Threads User #8
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#2043862 - 10/13/15 02:51 PM
Re: Rate Lock on LE
Truffle Royale
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10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
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May I ask for a point of further clarification, John? Are you saying that esign isn't required for this part of TRID because it's not specifically called for in the Reg? I know that sending the LE or CloD is referenced as only acceptable via Esign. If I understand what you're saying, only those items specifically referenced in the Reg must follow Esign but those other elements, like the rate lock agreement, don't have to. If that's true, that will make life a tad easier. I was assuming knowledge of E-SIGN. The rate lock agreement has to be an executed agreement. In most states that I am aware of, that means it has to be written and signed. E-SIGN allows for it to be electronically delivered TO YOU by the consumer, because you can agree, under E-SIGN, that the bank will accept electronic delivery, and you, as a non-consumer, don't have to provide demonstrable consent. The demonstrable consent part of E-SIGN is required when a consumer is agreeing to accept electronic delivery FROM YOU.
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John S. Burnett BankersOnline.com Fighting for Compliance since 1976 Bankers' Threads User #8
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#2043867 - 10/13/15 02:56 PM
Re: Rate Lock on LE
John Burnett
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10K Club
Joined: Jul 2003
Posts: 17,395
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We don't use Esign so my knowledge is limited to what I've read. And what I've read is what led me to believe that yes, we'd need to be using Esign to send and receive the rate lock agreement. But Kathleen's post above led me to believe that Esign wasn't necessary. Why esign? It is a contract, not a disclosure mandating esign. I mentioned legal counsel to see how they feel about a faxed or emailed signature. It can be a legal signature. Now do you understand my still existing confusion?
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#2043887 - 10/13/15 03:56 PM
Re: Rate Lock on LE
Cheli
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10K Club
Joined: Dec 2000
Posts: 21,293
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#2087559 - 07/12/16 03:48 PM
Re: Rate Lock on LE
Cheli
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Gold Star
Joined: Sep 2001
Posts: 440
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As long as we follow the E-Sign Act’s demonstrable consent and disclosure provisions, and receive a response back from the applicant they did receive the faxed disclosures (thereby documenting the day of “receiptâ€) are there any impediments in delivering the TRID disclosures via fax regulatory-wise?
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