Source: http://blog.alta.org/mortgage-disclosures/
Timestamp: 2016-02-08 14:10:16
Document Index: 302627904

Matched Legal Cases: ['§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026']

ALTA Blog: Integrated Mortgage Disclosures
55 posts categorized "Integrated Mortgage Disclosures"
Posted by ALTA Blog at 6:48 AM
Posted by ALTA Blog at 11:24 AM
Question: We have been told by a couple of lenders that they would prepare a joint buyer and seller Closing Disclosure and deliver the same to both the buyer and seller for “signature.” Can the lender elect to take on the role of the settlement agent with regard to preparation and delivery of the Seller Closing Disclosure?
Answer: To comply with the TILA-RESPA Integrated Disclosures rule, both the buyer and seller must receive Closing Disclosures that provide details of the transaction. In sale transactions, the rule places the responsibility on the settlement agent to provide the seller with a Closing Disclosure relating to the seller’s transaction. See § 1026.19(f)(4). However, the rule also recognizes that in some instances the settlement agent may meet this obligation by either providing the seller with a seller-only Closing Disclosure or a combined buyer/seller Closing Disclosure. This can be done by either the lender or the settlement agent depending on the agreement between those parties. You should collaborate with your lender partners to determine who will prepare this document so you can ensure you meet your obligations under the Know Before You Owe regulation. Similar to lenders being liable for delivery and accuracy of the buyer’s Closing Disclosure, settlement agents are liable for delivery and accuracy of the seller’s Closing Disclosure. If a lender decides to provide the seller’s Closing Disclosure, the settlement agent must be aware of this process and ensure accuracy.
Posted by ALTA Blog at 10:47 AM
Fee Names on Loan Estimate and Closing Disclosure Must Match
Because the Consumer Financial Protection Bureau wants consumers to be able to compare fee estimates with what’s actually charged at consummation, the TILA-RESPA Integrated Disclosures (TRID) rule requires fee terminology to be consistent between the two forms. This is a challenge because fees for services are not called the same thing across the country. Lenders and settlement agents need to communicate and come to an agreement on standardized fee names for the Loan Estimate and Closing Disclosure.
Examples of variances in naming include valuation services versus appraisal. Some states require a specific terminology for fees. As an example in Texas, the fee for termites must be called "wood destroying insect fee."
Consistent terminology and order of charges. On the Closing Disclosure the creditor must label the corresponding services and costs disclosed under § 1026.38(f) and (g) using terminology that describes each item, as applicable, and must use terminology or the prescribed label, as applicable, that is consistent with that used on the Loan Estimate to identify each corresponding item. In addition, § 1026.38(h)(4) requires the creditor to list the items disclosed under each subcategory of charges in a consistent order. If costs move between subheadings under § 1026.38(f)(2) and (f)(3), listing the costs in alphabetical order in each subheading category is considered to be in compliance with § 1026.38(h)(4). See comment 37(f)(5)-1 for guidance regarding the requirement to use terminology that describes the items to be disclosed.
Lenders and settlement agents have started attempting to determine standard fee names. Below is one lender’s example of what it uses for title fees on the disclosures:
Title - Closing/Settlement Fee
Title - Lender’s Title Insurance
PAGE 2 of LOAN ESTIMATE PAGE 2 of CLOSING DISCLOSURE Posted by ALTA Blog at 7:54 AM
In transactions involving a seller, the settlement agent is required to provide the seller with the Closing Disclosure reflecting the actual terms of the seller’s transaction no later than the day of consummation. Multiple consumers
Posted by ALTA Blog at 10:19 AM
Posted by ALTA Blog at 7:29 PM
Question: Does the TILA-RESPA Integrated (TRID) rule require that the lender disclose the basic rate for owner’s title insurance (as opposed to quoting the enhanced rate)? Answer: As a general rule, you should disclose the basic rate for owner’s title insurance. In the Know Before You Owe rule’s Official Interpretation to § 1026.36(g)(4), it states, “The amount disclosed for an owner's title insurance premium pursuant to § 1026.37(g)(4) is based on a basic owner's policy rate, and not on an ‘enhanced’ title insurance policy premium.” However, “the creditor may instead disclose the premium for an ‘enhanced’ policy when the ‘enhanced’ title insurance policy is required by the real estate sales contract, if such requirement is known to the creditor when issuing the Loan Estimate.” Official Interpretation 37(g)(4)-1. The enhanced rate “should be disclosed as ‘Title—Owner's Title Policy (optional),’ or in any similar manner that includes the introductory description ‘Title - ’ at the beginning of the label for the item, the parenthetical description ‘(optional)’ at the end of the label, and clearly indicates the amount of the premium disclosed pursuant to § 1026.37(g)(4) is for the owner's title insurance coverage.” .” Official Interpretation 37(g)(4)-1.
Posted by ALTA Blog at 12:17 PM
Posted by ALTA Blog at 9:04 AM
Posted by ALTA Blog at 1:04 PM