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.
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.
Asking this question for both current and future rules:
On a construction-permanent loan application that has only one closing and one set of LE/CD disclosures for the transaction, what should the "sale price" be on the LE/CD with a transaction that involves a seller?
Should it only be the amount of the purchase price or should the cost to construct be included with the purchase price? I'm leaning towards the purchase price only based on 1026.37(a)(7) but we've been adding in the construction costs for some time now without criticism...
When it comes to processing a commercial loan request that includes a 1-4 family dwelling, are there any preliminary disclosures required to be given to the customer?
I understand we have to send out a full set of initial disclosures when a product changes from CNV to FHA and a new 3 day wait period applies, but when it changes from FHA to CNV is a redisclosure package enough or we do need to send a full set of initial disclosures?
If an early Closing Disclosure has been issued and the borrower now wants to add a co-borrower, what are the compliance issues that need to be reviewed?
Under Reg Z, is there a new 7 day waiting period to close due to a 'new' application' with the co borrower?
Do we go off of the date of application of the 'co borrower' or the original primary borrower application?
This is not technically a changed circumstance, but if no fees are increased that break tolerances, nor a program change, is there an issue?
While researching the May 2018 TILA-RESPA Integrated Disclosure rule Small Entity Compliance Guide, I found this in section 10.8:
"Seller-paid loan costs and other costs are required to be disclosed on the consumer's CloD, regardless of whether a separate CloD is provided to the seller. Seller-paid real estate commissions are one example of seller-paid costs that may not be omitted from and must be included on the consumer's CloD. 1026.38(g)(4); Comment 38(g)(4)-4. Additionally, non-commissioned real estate brokerage or agent charges for services to the seller or consumer are required to be itemized separately, with a description of the service and an identification of the person ultimately receiving the payment. Comment 38(g)(4)-1 and - 4; 1026.2(a)(11) and (a)(22)."
In the May 2018 TILA-RESPA Integrated Disclosure Guide to the Loan Estimate and CloD forms I found in section 3.4.3 on page 91:
"A separate CloD can be provided to the consumer and the seller to do not reflect the other party's costs and credits by omitting certain disclosures on each separate CloD (1026.38(t)(5)(v), (vi), (ix)."
This appears to contradict the compliance guide. Does the seller’s information need to be on the CloD and is this new? We thought that if you disclosed on separately disclosures and we had both, the borrower’s and the seller’s, in the loan file we were in compliance.
Regarding the 10% tolerance for recording fees, are the recording fees and fees charges by the settlement attorney all included in a cumulative 10% tolerance, or are recording fees in their own 10% tolerance category? For example, we have a settlement attorney that did not disclose they would be charging a $50.00 release fee on a refinance, however, we did over-disclose on the lenders title policy fee on the Loan Estimate, which will allow us to remain under the 10% tolerance if this is a cumulative tolerance.
In regards to the new TRID disclosures, we choose not to issue the seller CD on a purchase transaction. Thus, we are not disclosing seller incurred fees on our borrower's CD. We are being told that this is incorrect and that we should be disclosing those fees. Again, this is seller incurred fees, not borrower fees that the seller paid. Your thoughts on this.
For TRID purposes, is a construction loan considered to be a purchase money loan?