2. The information contained in this presentation is not, and is not
intended to be, legal advice; viewers of this presentation are
strongly encouraged to obtain the advice of independent legal
counsel regarding the subject matter of this presentation. The
information contained in this presentation is confidential and for
the use of the intended audience only. This presentation is not
for distribution to the public. Any opinions or views expressed
in this presentation are not necessarily the views of Waterstone
Mortgage Corporation, Waterstone Bank SSB, or Waterstone
Financial, Inc., but are independent views and opinions of the
presenter.
DISCLAIMER
2
5. 5
Title company (settlement agent) for lenders side
must be approved by WMC in advance and follow
ALTA best practices
WMC prepares the CD (Closing Disclosure) and
needs all fees 10 days prior to closing
Title company (settlement agent) prepares seller CD
Unapproved settlement agents not allowed
Title Insurance / Settlement Agent
7. 7
3 Ways to Deliver
Delivery & Receipt of CD
Electronic
(Encompass Web Portal)
• Deliver and receive the same
day. We need a time/date
stamp in Encompass. Can’t
use Outlook read receipts.
• Borrower needs to RECEIVE
and CONSENT 3 business
days prior to closing
In Person
• CD needs to be printed and signed
by borrower on the same day
• Date of document must match date
of acknowledgement
• Date of document must be within
3 business days of closing
• Otherwise 3 business days from
CD issuance to loan consummation
US Mail/
Overnight
• 7 days from CD
issuance to loan
consummation
• Proof of receipt
required to shorten
waiting period
8. Example: Delivery 8
E-Delivery
Borrower must receive and
acknowledge 3 days prior
to closing
Can acknowledge October 22nd at
5 pm and close October 26th at 9 am
In Person
Borrower must sign and proof
uploaded 3 days prior to closing
Can acknowledge October 22nd
at 5 pm and close October 26th
at 9 am
US Mai/
Overnight
Additional 3 days for
presumption of delivery
CD Due/
Receipt
Closing
1 2
3
1 2 3US Mail/
Secure Web
Portal/Overnight
10. 10
When do we need to re-disclose and
wait another 3 days to close a loan?
Add a pre-payment penalty
Change products
• Fixed to ARM or ARM to Fixed
Change the APR by more than 0.125%
• TRID technically requires re-disclosure
even if APR goes down
12. 12
No change to the loan program or
pre-payment penalty
No change in the APR
UW has to review and re-run AUS findings
and note the seller credit, verify it doesn’t
exceed 6% (or program limits)
Revised CD (Closing Disclosure) is issued
to borrower at closing
Do not need to wait an additional 3 business days
2 days prior to closing, after a CD was issued,
borrower sees scratches in the floor and gets a
$1000 credit from seller.
13. 13
No change to the loan program or
pre-payment penalty
No change in the APR
As long as our credit docs, approvals, and
rate locks are still valid there is no need to
update or change UW
Revised CD (Closing Disclosure) is issued
to borrower at closing
Do not need to wait an additional 3 business days
HUD (CD) from the sale of borrower’s current
home is required at closing. That closing blows
up the morning of, delaying our closing from
October 26th to October 29th.
14. 14
No change to the loan program or pre-payment penalty
Changed circumstances letter issued to borrower for
the escrow fee
APR is affected but not enough to increase .125%
UW has to review escrow agreement and terms
Revised CD (Closing Disclosure) is issued
to borrower at closing
Do not need to wait an additional 3 business days
A broken window is supposed to be fixed
prior to closing. Due to rain it was not
completed. An escrow is set up after we
issued a CD for $1000 x 1.5 = $1500.
15. 15
No change to the loan program or pre-payment penalty
Changed circumstances letter issued to borrower
for POA
APR is affected but not enough to increase .125%
UW has to review POA agreement and terms
Revised CD (Closing Disclosure) is issued
to borrower at closing
Do not need to wait an additional 3 business days
Co-borrower can’t make it to closing – stuck in
NYC due to a snow storm. Power of Attorney is
set up the day before closing but after we have
already issued the CD.
16. 16
No change to the loan program or pre-payment penalty
APR is affected a minimal amount due
to changes in pre-paid interest
Revised CD (Closing Disclosure) is issued to borrower
at closing
Do not need to wait an additional 3 business days
Closing is set for October 26th. CD issued
October 22nd. Sale of buyer’s previous residence
delayed by 5-7 days because they are using an
internet lender. Our closing is delayed by 5-7
days also.
17. 17
Can the seller issue a credit
to the buyer at closing to
reduce the APR?
YES – You can issue a seller
credit at the closing to reduce
the APR and avoid waiting
another 3 business days.*
* Provided the additional seller credit is in compliance with the
loan program and will not affect loan approval (6%) and there
are borrower paid prepaid finance charges at closing.
19. 19
We need all changes to contracts and
amendments ASAP
Getting copies at closing of various changes and
amendments could delay or affect the closing
If you are changing the price or issuing
a credit, talk with us first to make sure it won’t
affect the loan approval
Contract Changes & Amendments
24. Sample System
Expected Actual Status
Application Date 10/5/15
Ready for Disclosures
Appraisal Ordered
Initial App Docs Due
App Sent to Processing
Order Title
Submission to UW
HO Insurance Quote Due
……
CD Due Date
Final Package to Title
Closing Date
10/5/15
10/30/15
10/7/15
10/7/15
10/8/15
10/8/15
10/14/15
10/15/15
10/27/15
10/28/15
10/5/15
10/5/15
10/9/15
10/9/15
10/8/15
25.
26.
27.
28.
29. 1. Meet with your Waterstone Mortgage
loan professional to complete your loan
application within 24 hours of contract
acceptance.
2. Provide your Waterstone Mortgage loan
professional with a complete copy of
items on the document request list within
24 hours of loan application
3. Use eSigning and eDisclosures delivery
functionality to ensure timely delivery
and completion of required forms
4. Work with your Waterstone Mortgage
loan professional to ensure the appraisal
is ordered within 3-5 business days of
contract acceptance
5. Stay in constant communication with
your Waterstone Mortgage loan
professional and provide any documents
requested within 24-48 hours
29
6. If possible, avoid a closing on a Friday
or last day of the month (these days
tend to be very busy for title companies)
7. Minimize contract renegotiations,
credits, and amendments
8. All assets used for closing should be
liquid and in your account 10 business
days prior to closing
9. Have your homeowners insurance
policy bound and finalized 2 weeks
before closing
10. Don’t make any large purchases, open
up new credit, or move money between
bank accounts without talking with your
Waterstone Mortgage loan professional
first
30. 30
1. Encourage buyers to meet with a
Waterstone Mortgage loan professional
before writing a purchase contract
2. Get the complete purchase contract to
your loan professional at Waterstone
Mortgage ASAP
3. Waterstone Mortgage needs to order
the appraisal within 3-5 business days
of application
4. Verify the title company is on our
approved vendor list
5. Use vendors you know and trust
(inspectors, contractors, etc.)
6. Get inspections done as early as
possible
7. Understand timeframes and
expectations for the loan process
8. If possible, avoid scheduling a closing
on a Friday or last day of the month
(these days tend to be very busy for title
companies)
9. Minimize any changes, credits,
amendments 5 business days
before closing
10. Make sure the information required
by the title company is provided
10 business days prior to our closing
