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TRID:
Current State vs Future State
Comparison
CURRENT STATE FUTURE STATE 10/3/15
COVERED TRANSACTIONS Federally related mortgage
loans: closed-end,
consumer purpose
tra...
CURRENT STATE FUTURE STATE 10/3/15
DEFINITION OF
APPLICATION
1. Name
2. Income
3. Social Security #
4. Property Address
5....
CURRENT STATE FUTURE STATE 10/3/15
BUSINESS DAY FOR 7 DAY
DELIVERY OF INITIAL
DISCLOSURE TO CLOSING
All calendar days exce...
CURRENT STATE FUTURE STATE 10/3/15
REQUIRE VERIFICATION
DOCUMENTS
Prohibited until GFE is
provided and consumer
indicates ...
CURRENT STATE FUTURE STATE 10/3/15
PERMITTED FEE
INCREASES FROM INITIAL
DISCLOSURES (GFE & LE)
TO CLOSING DISCLOSURES
(HUD...
CURRENT STATE FUTURE STATE 10/3/15
PERMITTED COST
INCREASES FROM INITIAL
DISCLOSURES (GFE & LE)
TO CLOSING DISCLOSURES
(HU...
CURRENT STATE FUTURE STATE 10/3/15
CHANGED
CIRCUMSTANCES
Categories of changed
circumstances:
1. Changed circumstances
aff...
CURRENT STATE FUTURE STATE 10/3/15
TRIGGER FOR REVISED
INITIAL DISCLOSURES
Good Faith Estimate:
1. Valid changed
circumsta...
CURRENT STATE FUTURE STATE 10/3/15
TRIGGER FOR REVISED
INITIAL DISCLOSURES
*RSM currently does not
offer construction loan...
CURRENT STATE FUTURE STATE 10/3/15
TIMING OF REVISED
INITIAL DISCLOSURES
Good Faith Estimate:
Delivery within 3 business
d...
CURRENT STATE FUTURE STATE 10/3/15
DEFINITION OF A
BUSINESS DAY FOR 3 DAY
REDISCLOSURE
A day on which the
lenders’ offices...
CURRENT STATE FUTURE STATE 10/3/15
RESPONSIBLE PARTY FOR
ACCURACY OF CLOSING
DISCLOSURE
TIL – LENDER
HUD1 – SETTLEMENT
AGE...
CURRENT STATE FUTURE STATE 10/3/15
DEFINITION OF “BUSINESS
DAY” FOR DELIVERY OF
CLOSING DISCLOSURES
All calendar days exce...
CURRENT STATE FUTURE STATE 10/3/15
SUBSEQUENT CHANGES
TO CLOSING DISCLOSURES
An inadvertent or technical
error in completi...
CURRENT STATE FUTURE STATE 10/3/15
SUBSEQUENT CHANGES
TO CLOSING DISCLOSURES
Changes FOLLOWING
Closing requiring revised
C...
CURRENT STATE FUTURE STATE 10/3/15
TOLERANCE VIOLATIONS
(CURE)
Not deemed a section 4
violation IF:
A revised HUDI or HUD...
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Trid current vs future state

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Slideshow of changes coming to Real Estate transaction rules in New Mexico

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Trid current vs future state

  1. 1. TRID: Current State vs Future State Comparison
  2. 2. CURRENT STATE FUTURE STATE 10/3/15 COVERED TRANSACTIONS Federally related mortgage loans: closed-end, consumer purpose transactions secured by residential real property with a 1-4 family residence Closed-end, consumer credit transactions secured by real property (Does not require a residential structure however, RSM does not do LOT loans at this time. EXEMPTIONS • Business purpose loans* •Reverse Mortgages •HELOCS* •Lot loans* •Loans secured by more than 25 acres •Construction Loans* •Temporary , closed-end consumer loans (i.e., Bridge Loans)* •Credit extended to non- natural persons (LLC’s, Trusts, Estates) * Not currently offered by RSM •Business purpose loans •Reverse Mortgages •HELOCS* •Mobile home loans with no land attached
  3. 3. CURRENT STATE FUTURE STATE 10/3/15 DEFINITION OF APPLICATION 1. Name 2. Income 3. Social Security # 4. Property Address 5. Estimated Value 6. Loan Amount 7. Any other information deemed necessary by Lender (not applicable for RSM) 1. Name 2. Income 3. Social Security # 4. Property Address 5. Estimated Value 6. Loan Amount INITIAL DISCLOSURE(S) 1. Good Faith Estimate 2. Early Truth In Lending 1. Loan Estimate DELIVERY TIMING Within 3 days of application and at least 7 days prior to closing. Same ELECTRONIC DELIVERY Permitted if in compliance with E-Sign Act Same BUSINESS DAY FOR 3 DAY DELIVERY OF INITIAL DISCLOSURES All days Lender is open for Business. For RSM this does NOT include Saturday Same
  4. 4. CURRENT STATE FUTURE STATE 10/3/15 BUSINESS DAY FOR 7 DAY DELIVERY OF INITIAL DISCLOSURE TO CLOSING All calendar days except Sunday and legal public holidays Same SETTLEMENT SERVICE PROVIDER LIST Must be provided within 3 days of application Same FEE RESTRICTION Except for a Credit Report, fees cannot be charged or collected until disclosures are provided and consumer indicates Intent to Proceed Same PRE-APPLICATION DISCLOSURE Permitted but cannot look like GFE Permitted but cannot look like LE or GFE and must state in 12 POINT FONT on top of 1st page: “Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan”.
  5. 5. CURRENT STATE FUTURE STATE 10/3/15 REQUIRE VERIFICATION DOCUMENTS Prohibited until GFE is provided and consumer indicates Intent to Proceed. Prohibited until LE is provided and borrower indicates Intent to Proceed. PERMITTED FEE INCREASES FROM INITIAL DISCLOSURES (GFE & LE) TO CLOSING DISCLOSURES (HUD1 & CD) Costs that CANNOT increase from GFE to HUD1: 1) Origination Charge 2) Once interest rate locked:  credit or charge for interest rate chosen  adjusted origination charge 3) Transfer Taxes Costs that CANNOT increase from LE to CD: 1) Fees paid to lender or mortgage broker 2) Fees paid to an affiliate of lender or mortgage broker 3) Transfer Taxes 4) Fees paid to an unaffiliated 3rd party if the lender did not permit the borrower to shop for the service.
  6. 6. CURRENT STATE FUTURE STATE 10/3/15 PERMITTED FEE INCREASES FROM INITIAL DISCLOSURES (GFE & LE) TO CLOSING DISCLOSURES (HUD1 & CD) Costs that can increase in the aggregate up to 10%: 1. Lender required, lender selected settlement providers. 2. Lender required services, title services and required title insurance when the borrower uses a settlement service provider identified by the lender on the settlement service provider list. 3. Government Recording charges Costs that can increase in the aggregate up to 10%: 1. Recording fees paid to government. 2. Services the borrower is permitted to shop for and selects the provider from the settlement service provider list. 3. Services the borrower is permitted to shop for and does NOT select a provider 4. Services for which the lender permits the borrower to shop for but fails to provide the settlement service provider list.
  7. 7. CURRENT STATE FUTURE STATE 10/3/15 PERMITTED COST INCREASES FROM INITIAL DISCLOSURES (GFE & LE) TO CLOSING DISCLOSURES (HUD-1 & CD) Costs that can increase in any amount: 1. Prepaid interest 2. Property insurance premiums. 3. Amounts paid into escrow 4. Charges paid to 3rd party service providers selected by borrower that are not on the lender’s written list. 5. Charges paid for 3rd party services not required by the lender. Costs that can increase in any amount: 1. Prepaid interest 2. Property insurance premiums. 3. Amounts paid into escrow 4. Charges paid to 3rd party service providers selected by borrower that are not on the lender’s written list. 5. Charges paid for 3rd party services not required by the lender.
  8. 8. CURRENT STATE FUTURE STATE 10/3/15 CHANGED CIRCUMSTANCES Categories of changed circumstances: 1. Changed circumstances affecting the settlement fees. 2. Changed circumstances affecting the loan 3. Borrower requested changes 4. Expiration of the GFE (10 business days) with no Intent to Proceed. 5. Delayed settlement on a construction loan if notice is provided. 6. Interest rate dependent charges. Categories of changed circumstances: 1. Changed circumstances affecting the settlement fees. 2. Changed circumstances affecting eligibility. 3. Borrower requested changes. 4. Expiation of the LE (10 business days) with no Intent to Proceed. 5. Delayed settlement on a construction loan if notice is provided. 6. Interest rate dependent charges.
  9. 9. CURRENT STATE FUTURE STATE 10/3/15 TRIGGER FOR REVISED INITIAL DISCLOSURES Good Faith Estimate: 1. Valid changed circumstances that result in increased charges. 2. Locking in loan’s interest rate. 3. Expiration of GFE with no Intent to Proceed. 4. Permanent financing of construction loan more than 60 calendar days after original GFE with construction loan disclosure.* 5. Change in any material term of the loan. TIL: 1. APR becomes inaccurate by more than .125% Loan Estimate: 1. Valid changed circumstances that result in an increase of any amount to “zero tolerance” fees:  A fee paid to the lender, mortgage broker or affiliate of either.  A fee for which the borrower is not permitted to shop for  Transfer Taxes.
  10. 10. CURRENT STATE FUTURE STATE 10/3/15 TRIGGER FOR REVISED INITIAL DISCLOSURES *RSM currently does not offer construction loans. 2. Valid changed circumstance that results in an increase in the fees that fall into the 10% category:  Charges borrower is permitted to shop for.  Recording fees. 3. Locking loan’s interest rate. 4. Expiration of LE with no Intent to Proceed. 5. Within 60 days of the original LE for a construction loan, but only when the original LE clearly states the new LE may be issued prior to 60 days prior to closing*
  11. 11. CURRENT STATE FUTURE STATE 10/3/15 TIMING OF REVISED INITIAL DISCLOSURES Good Faith Estimate: Delivery within 3 business days of receiving notice that a changed circumstance occurred. TIL: Received by borrower at least 3 business days prior to closing. Loan Estimate: Delivery within 3 business days of receiving notice that a changed circumstance triggered EXCEPT: Revised LE cannot be received by the borrower on the same day the borrower receives the Closing Disclosure. Revised LE must be received at least 4 business days prior to closing. If delivering the revised LE by means other than in person, including electronically, the disclosure is considered to rec’d 3 business days after placing in mail unless lender receives proof of receipt.
  12. 12. CURRENT STATE FUTURE STATE 10/3/15 DEFINITION OF A BUSINESS DAY FOR 3 DAY REDISCLOSURE A day on which the lenders’ offices are open to the public for substantially all business functions. For RSM, this does NOT include Saturday. Same DEFINITION OF A BUSINESS DAY FOR PROVISION OF REVISED LE OR “4 BUSINESS DAYS” PRIOR TO CLOSING N/A All calendar days EXCEPT Sunday and the legal public holidays. CLOSING DISCLOSURES Two Disclosures: HUDI Settlement Statement and Final Truth In Lending (TIL) One Disclosure: Closing Disclosure (CD)
  13. 13. CURRENT STATE FUTURE STATE 10/3/15 RESPONSIBLE PARTY FOR ACCURACY OF CLOSING DISCLOSURE TIL – LENDER HUD1 – SETTLEMENT AGENT CD – LENDER (Lender and Settlement Agent may agree to divide responsibility for completion, but Lender remains the responsible party.) DELIVERY OF CLOSING DISCLOSURE 1. Available for inspection on business day prior to closing with items known to lender. 2. At or before closing. 1. Received by borrower no later than 3 days prior to closing. 2. Cannot be received by borrower same day revised LE is issued. 3. If delivering the CD other than in person, including electronically, the disclosure is considered to be rec’d 3 business days after placing in mail unless lender has proof of receipt.
  14. 14. CURRENT STATE FUTURE STATE 10/3/15 DEFINITION OF “BUSINESS DAY” FOR DELIVERY OF CLOSING DISCLOSURES All calendar days except Sundays and legal public holidays Same ELECTRONIC DELIVERY Permitted-but must comply with E-Sign Act Same CLOSING DISCLOSURE FEE RESTRICTION No fee may be imposed for preparation of disclosure Same
  15. 15. CURRENT STATE FUTURE STATE 10/3/15 SUBSEQUENT CHANGES TO CLOSING DISCLOSURES An inadvertent or technical error in completing the HUD-1 or HUD-1A  Provide a revised HUD- 1 or HUD-1A within 30 calendar days of closing Changes BEFORE closing requiring a revised CD AND NEW 3-BUSINESS DAY waiting period: The disclosed APR is found to be inaccurate by increasing more than .125% The loan product changes A prepayment penalty has been added. Changes BEFORE closing requiring revised CD at or before closing but NO new waiting period: Any change other than those described above. •Revised CD MUST be available day before closing if requested by borrower
  16. 16. CURRENT STATE FUTURE STATE 10/3/15 SUBSEQUENT CHANGES TO CLOSING DISCLOSURES Changes FOLLOWING Closing requiring revised CD: Events that cause a change to the amount paid by the borrower within 30 calendar days of closing. •Within 30 calendar days after receipt of change information. Non-numeric clerical errors •Within 60 calendar days after closing
  17. 17. CURRENT STATE FUTURE STATE 10/3/15 TOLERANCE VIOLATIONS (CURE) Not deemed a section 4 violation IF: A revised HUDI or HUDIA is provided. Amount is refunded to borrower within 30 calendar days after closing. Not deemed a violation IF: A revised CD is provided Amount is refunded to borrower within 60 calendar days after closing.

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