Latest Lending - Loan Estimates Topics

Changes from FHA to CNV- Send Initial Disclosures?

12/16/2018

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?

Adding Co-Borrower After Closing Disclosure

12/09/2018

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?

TILA-RESPA Integrated Disclosure-CloD

12/09/2018

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.

10% Tolerance for Recording Fees

12/02/2018

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.

Not Disclosing Seller Incurred Fees on CD

11/25/2018

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.

Construction Considered Purchase Money? (TRID)

11/25/2018

For TRID purposes, is a construction loan considered to be a purchase money loan?

Pest Treatment Seller Cost- Redisclose LE?

11/04/2018

When pest treatment is required and if the seller is responsible for that cost, does that still constitute redisclosure of loan estimate?

Disclosing Broker Fee as Lender Paid Item POC

10/28/2018

We are moving to offer higher rates and eliminate origination fees to include broker fees when a broker is involved. Instead we would pay the broker upfront, and hopefully collect that fee in interest over the next several years. Do we have to disclose the broker fee as a lender paid item POC, or do we eliminate it all together?

TRID Amendment: Total of Payments Disclosure

10/28/2018

Based on the TRID amendment effective 10/1/18, if a consumer decides to increase a loan amount after the initial loan estimate has been issued, is a revised LE required to comply with the new tolerance for Total of Payments disclosure?

TRID/Balloon Past Maturity-Treat as Refinance?

10/21/2018

We have a TRID, 62-month balloon loan that has gone past its maturity. Do we now have to treat this loan as a refinance? Does the borrower have to complete a new application or can we issue a Loan Estimate with the earlies, issue the CD (comply with the 7-day waiting period) and have the borrower sign an extension?