09/22/2019
When disclosing the payoff of an existing lien on the collateral property, should the amount listed on page 3 of the Closing Disclosure just show the
principal balance, or should it show the principal balance, plus the interest due?
I do not believe the reg goes into detail on what the amounts listed should be. My thought is we would need to list the amount that would fully payoff
that existing lien (principal plus interest). There has been discussions about not capitalizing off interest, but as long as we are not financing the
interest due into the new loan amount, I do not see how we would be capitalizing off previous interest.
In addition, if we list the payoff as the principal and interest due, would we need to list just want payoff amount, or would we need to list two
separate lines on the Closing Disclosure? I believe either way would be okay, but my thoughts are we would just need to list one line item that
includes both principal and interest due.
09/01/2019
If the buyer is being charged by the attorney to prepare the purchase contract, would we reflect that in Section C or Section H?
Also, would the fee description have "Title" in front of it?
06/30/2019
May a lender offer a gift card at closing for a mortgage loan, and would this then be disclosed on a loan estimate or closing disclosure?
06/16/2019
I'm new to TRID and trying to understand tolerance and cure amounts for things such as the following:
Loan Estimate :
- Recording Fees $32.00
- Settlement Agent Fee $500 and
- Title Search $300.00
Closing Disclosure:
Title Search $500.00
What would be the tolerance cure?
06/09/2019
If we give a lender credit on a refinance transaction and the credit exceeds the cost on the refinance, where do the excess funds (credit) go? Can the lender just reduce the credit, or does it have to be applied to a principal reduction?
04/21/2019
A lender submitted a loan for purchase and I need help with a TRID violation that I found on the loan. The lender forgot to include two fees in the finance charges and the final closing disclosure signed by the borrower is understated by $535. Typically, we've always asked for a refund cure from the lender for the amount understated and a revised closing disclosure. The lender reviewed the situation and responded to me with this:
"After reviewing this loan I concur that neither the Purchase Review Fee ($500) nor the Wire Transfer Fee ($35) were included in the finance charge.
These fees are setup to be included in the finance charge. Support has looked into the issue and it appears that a user mistakenly or accidentally removed the check boxes. We are in the process of modifying our security settings to ensure that only limited users will have the security to change the prepaid finance status of any fees.
I have generated new calculations and the Finance Charge is now $93,017.70;
Amount Financed is $97,496.59;
and APR is 5.076%.
The APR did not increase beyond tolerance.
The change does not impact the amount of closing costs nor does it change the cash to close required from our member; therefore this does not constitute a post-consummation event (1026.19(f)(ii)) nor does it fall under the clerical error carve out (1026.19(f)(2(iv)) so there is not a way to cure but rather it is a technical violation that we will report to stakeholders."
The lender is stating that yes, the finance charge was understated, but this is not something that can be cured as it is was not a good faith estimate of itemized charges 1026.19(f)(2)(v), and it was not a clerical error. At this point we have two options:
• non-purchase for non-compliance with TRID
• allow even though there may be harm to borrower.
Would issuing a refund (cure) for an understated Finance Charge (assuming the Finance charge was understated by more than $100) bring the loan into compliance with TRID similar to issuing a tolerance cure for a specific closing cost fee increase?
03/17/2019
We are doing a second mortgage where the first mortgage is already in escrow.
1.) Should we disclose the estimated escrow on page 1 of the Loan Estimate with No for being in escrow or should we completely leave them off since the borrower is already in escrow.
2.) On Page 4 of the Closing Disclosure how should we disclose here as well, and if we select no escrow, our only options are because the customer declined it or your lender does not offer one. Neither of these fit our situation because the customer is already in escrow with us, so they didn't decline it nor did we not offer one.
02/17/2019
We offer a discounted rate with some of our ARM products. We use the index at the time the rate was set to calculate the fully indexed rate throughout the entire loan and that is what is disclosed on the LE and CD.
Under what circumstance would we locate an updated index from a the date of closing or within 45 days of closing and disclose a blended APR. Would this be a 2 time construction closing? We disclose based on once the rate/index is locked that is the rate/index we use when we close. Unless of course the loan is re-locked for any reason.
02/10/2019
Are we required to always follow the E-sign rules when emailing a CD to the borrower 3 days before closing? For instance if we deliver the CD by email (without following E-sign) and the borrower replies that they have received and read the CD, is that sufficient proof that the CD was delivered 3 days before closing? We do not require the borrowers to sign the CD.
01/27/2019
Are we allowed under TRID to add a release fee to a consumer mortgage payoff? The fee would be for recording the satisfaction of mortgage.
