REALTORS, the new TRID forms will be implemented on October 3, 2015. I am offering seminars on on the new TILA-RESPA Integrated Disclosure to interested agents. Give me a call if interested.

1. TILA-RESPA Integrated Disclosures

2. Safe Harbor Statement
This presentation contains "forward-looking" statements that involve risks, uncertainties and
assumptions. If the risks or uncertainties materialize or the assumptions prove incorrect, our
results may differ materially from those expressed or implied by such forward-looking
statements. All statements other than statements of historical fact could be deemed forward-
looking, including, but not limited to, any projections of financial performance; any statements
about historical results that may suggest on-going trends for our business; any statements of
the plans, strategies, and objectives of management for future operations; any statements of
expectation or belief regarding future events, potential markets or market size or technology
developments; and any statements of assumptions underlying any of the items mentioned.
These statements are based on estimates and information available to us at the time of this
presentation and are not guarantees of future performance. Actual results could differ
materially from our current expectations.

3. Exempt Transactions
The New disclosures are required for all closed-end transaction
secured by real estate with the exception of the following:
o HELOC’s
o Reverse Mortgage
o Cash Purchase Transaction
o Loans secured by Mobile Homes and loans secured by a dwelling
that is not attached to land
o Certain housing assistance programs
o Creditor who originate 5 or fewer mortgages in a year

4. CFPB Goals of the new disclosures
o Improved consumer understanding
o Risk factors
o Short-term and long-term costs
o Monthly payments
o Better comparison shopping
o Comparisons of competing loan offers
o Shopping for closing costs
o Avoid costly surprises at the closing table
o Easier comparisons of the estimated and final
loan terms of the loan
o More time to consider choices
o Limits on closing cost increases

5. So how does this
affect you, the
Realtor?

6. So if borrowers need closing disclosures 3 days prior
to closing, let’s take a look at what this means for
the closing process…
The borrower will now need their closing
disclosures 3 days prior to closing.
Disclosure Timing

7. Contract
signed
Make
Application

8. What triggers a new 3-day waiting period for the
Closing Disclosure?
o APR Changes
o Pre-Payment Penalties
o Loan Program Changes

9. Less Significant Changes
o Can be disclosed on a revised Closing Disclosure form provided to
the consumer at or before closing, without delaying the closing
o Will not cause closing delays for less significant costs that may
frequently change
o The Consumer has the right to examine the revised Closing
Disclosure on request on the day before closing even without
substantial changes
o Seller must receive the revised disclosure no later than day of
consummation

10. Managing Expectations
What real estate agents need to know about the
changes to the process
o When writing the contract, how much time is needed for a
closing date?
o When will the appraisal be done?
o When do the conditions of the loan need to be finalized?
o Who are my contacts? Escrow/Mortgage Consultant/Lender or
both?
o When will I know if there is a problem with closing
on time?

11. Managing the Transaction
The Real Estate Agent’s Role
o Stay informed and in communication with all parties
o Possible change in the way the final walkthrough process is
completed
o Try to avoid any last minute changes
o Avoid “moving up” closing dates
o Be familiar with the process and how it will affect the contract
o Ultimately, give the closing process enough time to happen,
10 -15, even 20 day closings may be a thing of the past

12. New Disclosure Misconceptions:
o Walk-throughs will need to be done early enough to leave
room for any new changes that will need to be
re-disclosed for an additional 3 day waiting period
o National Association of Realtors is projecting 45-60 day
closings.
o All Title Companies must be on an approved vendor list

13. Let’s take a look at the new
Closing Disclosure!

14. Closing Information
Loan Terms
Projected Payments
Costs at Closing
Closing Disclosures Pg. 1

15. Closing Disclosures Pg. 2
Loan Costs
A. Origination Charges
B. Services Borrower
Did Not Shop For
C. Services Borrower Did
Shop For
D. Total Loan Costs

16. Closing Disclosures Pg. 2 Continued
Other Costs
Total Closing Costs
H. Other:
1. HOA Capital Contribution
5. Real Estate Commission
6. Real Estate Commission
7. Title-Owner’s Title
F. Prepaids:
1. Homeowner’s Ins. Premium
2. Mortgage Ins. Premium
3. Prepaid Interest
4. Property Taxes

17. Closing Disclosures Pg. 3
Calculating Cash to Close
Variation(Tolerance) amounts shown
here
Summary of borrower’s transaction
Summary of seller’s transaction
Itemization in I and J are like pg. 1
of today’s Hud-1 Settlement
Statement

18. Closing Disclosures Pg. 4
Loan Disclosures
Adjustable Payment (AP) Table*
Adjustable Interest Rate (AIR) Table*
*Tables are only included if applicable

19. Closing Disclosures Pg. 5
Loan Calculations
Other Disclosures
Questions Notice

20. Closing Disclosures Pg. 5 Continued
Contact Information(Sale)
Signature Statement
Contact information for:
1.Lender
2. Mortgage Broker
3. Real Estate Broker (B)
4. Real Estate Broker (S)
5. Settlement Agent

21. o Ensure borrowers are “pre-approved” as opposed to “pre-
qualified” up front before seeing houses.
Here’s how to keep your buyers and sellers happy
with continued 30 day closings:
o Keep tight communication between you, borrower and
Lender to ensure there aren’t any surprises right before
closing.
o Time is of the essence! Educate buyers on necessity of
providing documents ASAP!
o Embrace technology by using electronic disclosures and
signatures.

22. o Ensure someone will be present for all required inspections
o Schedule inspections immediately.
o Only accept Pre-approvals from credible, known lenders.
o Select only closing agents that are up to the task.

23. The Mortgage Firm’s Goals:
We want to close when you, the seller and the buyers want to
close.
o Strive to have the final clear to close a minimum of 5 days
prior to the estimated closing on the contract
o Quick Pre-Approvals
o Provide clear communication with all parties involved
o Maintain reasonable in-house Underwriting timeframes

24. Questions?

25. Let’s take a look at the new
Loan Estimate!

26. Loan Estimate Pg. 1
General Information
Loan Terms
Projected Payments
Costs at Closing
If answered to questions in this
section were “YES” different
information would be provided
Includes payment schedule &
estimated taxes, insurance &
assessments
Website link
For general information, tools, “about”
statement and link to CFPB website.

27. Loan Estimate Pg. 2
Loan Costs
Other Costs
Calculating Cash to Close
Adjustable Payment (AP) Table*
Adjustable Interest Rate (AIR) Table*
* To reduce confusion, these tables are only included if applicable

28. Loan Estimate Pg. 3
Contact Information
Comparisons
Other Considerations
Signature Statement
• Signatures not required
• Different statements required
depending on whether signature line
is or is not included.

29. Questions?

30. Thank you!
Questions, concerns, or need clarification, contact:
Suzanne Morton, Lic. Loan Originator NLMS-262282
561-389-5102
yourbestmortgagechoice@gmail.com
SuzanneMorton.com