Disclosures brokers vs. bank

Posted By: Many Hats

Disclosures brokers vs. bank - 06/16/15 02:58 PM

In a situation where a bank has mortgage brokers that originate loans for the bank (where the broker is paid a fee and the bank closes in it's name and funds the loan), which early disclosures are provided by each party?

This is what I have - is this correct?

Broker: (within 3 days of receiving app)

GFE
Acknowledgement of Receipt of Good Faith
HUD booklet
Servicing Disclosure
Occupancy Statement
Certification and Authorization
Florida Mortgage Brokerage Fee Agreement

Bank/creditor: (within 3 days of receiving app from broker
)
Revised GFE (if necessary after receipt of initial GFE from broker and valid COC)
Initial TILA disclosure
CHARM booklet
Appraisal Disclosure
Acknowledgment of Receipt of Counselor List
Identified Servicer Provider List
Posted By: Many Hats

Re: Disclosures brokers vs. bank - 06/17/15 01:33 PM

Bump smile
Posted By: swiggles

Re: Disclosures brokers vs. bank - 06/17/15 02:41 PM

FYI.....I have no idea. LOL
Posted By: Many Hats

Re: Disclosures brokers vs. bank - 06/18/15 03:25 PM

LOL - I know right! No one seems to know, but I really need to get an answer.
Posted By: Kathleen O. Blanchard

Re: Disclosures brokers vs. bank - 06/18/15 03:31 PM

Much depends upon your agreement with the broker.
Posted By: rlcarey

Re: Disclosures brokers vs. bank - 06/18/15 09:53 PM

Explain this one:

Revised GFE (if necessary after receipt of initial GFE from broker and valid COC)

Why would the broker be exempt from delivering the early TIL, early ARM and Charm booklet if you didn't get the application within three days of application? If you are getting the application that fast, then why would they issue the GFE only???

If you are worried about how this works with the broker now, you really need to get on-board with the new TRID rules as that is going to dramatically change the broker landscape.
Posted By: Many Hats

Re: Disclosures brokers vs. bank - 06/19/15 12:59 AM

Originally Posted By Kathleen B
Much depends upon your agreement with the broker.


The problem is - there are NO written agreements with the brokers (which will likely change, but for now - no agreements.


Originally Posted By rlcarey
Explain this one:

Revised GFE (if necessary after receipt of initial GFE from broker and valid COC)

Why would the broker be exempt from delivering the early TIL, early ARM and Charm booklet if you didn't get the application within three days of application? If you are getting the application that fast, then why would they issue the GFE only???


The application is not usually received by the bank until after the 3 days has already passed. In reading TILA, the early TIL disclosure must be provided by the creditor. Since the broker is not the creditor in the transaction, there is confusion.

It sounds like you are saying that since we do not get the application that quickly, then all early RESPA/TILA disclosures should be provided by the broker. Correct?

Then, the bank would issue a revised GFE if a COC occurs and one is required.
Posted By: rlcarey

Re: Disclosures brokers vs. bank - 06/19/15 01:21 AM

Just make sure that you are dealing with individuals that qualify as an “intermediary agent or broker” for taking advantage of the exception that allows the early TIL/ARM/CHARM to be delayed until you receive the application.

You have to live with the GFE provided by the broker. The fact that they forgot something or the fees quoted are not correct is not a COC.

How these brokers are going to do any of this and shop these LEs around to various lenders after 10/01 is beyond my comprehension. The specific names of all the fees are going to have to match up exactly with the CloDs, the Loan ID is going to have to be supported by each bank that gets the LE throughout the process, the brokers are going to have to use service provider lists that are acceptable to each bank, etc.
Posted By: Kathleen O. Blanchard

Re: Disclosures brokers vs. bank - 06/19/15 01:49 AM

There is also a big risk in dealing with brokers (fee or no fee) without agreements. There should be requirements (including fair lending training), tracking of errors and problems...a full third party monitoring.
Posted By: Many Hats

Re: Disclosures brokers vs. bank - 06/25/15 07:03 PM

[quote=rlcarey]Just make sure that you are dealing with individuals that qualify as an “intermediary agent or broker” for taking advantage of the exception that allows the early TIL/ARM/CHARM to be delayed until you receive the application.
quote]

This might be a dumb question, but how would we know if someone qualifies as an intermediary agent or broker?
Posted By: rlcarey

Re: Disclosures brokers vs. bank - 06/25/15 07:14 PM

If you don't know that much about the broker's that you are dealing with, you probably shouldn't be dealing with them. I would hope that making that determination would be part of the due diligence process prior to signing a broker contract with them and ever agreeing to receive an application from them.