Source: https://www.clta.org/page/Consumer5
Timestamp: 2019-10-19 22:04:12
Document Index: 742927374

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

Understanding the Language of Real Estate - California Land Title Association
To help you better understand the language of real estate, the California Land Title Association has defined some of today's most common real estate, lending and title terms.
Affiliate: Any company that controls, is controlled by, or is under common control with another company, as set forth in the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.).
Application: The submission of a consumer's financial information for the purposes of obtaining an extension of credit. The information consists of six parts - the consumer's name, the consumer's income, the consumer's social security number to obtain a credit report, the property address, an estimate of the value of the property, and the mortgage loan amount sought.
Business Day: A day on which the creditor's offices are open to the public for carrying on substantially all of its business functions. However, for purposes of rescission the term means all calendar days except Sundays and the legal public holidays specified in 5 U.S.C. 6103(a), such as New Year's Day, the Birthday of Martin Luther King, Jr., Washington's Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.
Initial Loan Estimate (LE) delivered within three business days after receiving application. Closing Disclosure (CD) must be “received” by consumer no later than three business days before consummation.
Closing Disclosure: This form provides detailed accounting of the transaction and replaces the final TIL and HUD-1 Settlement Statement. May be provided by creditor or settlement agent, however, the creditor is responsible for ensuring that it is provided in a timely manner. Closing Disclosure Explainer.
Consummation: The time that a consumer becomes contractually obligated on a credit transaction.
Creditor: A person who regularly extends consumer credit that is subject to a finance charge or is payable by written agreement in more than four installments (not including a down payment), and to whom the obligation is initially payable, either on the face of the note or contract, or by agreement when there is no note or contract.
Good Faith: The disclosures must be provided in good faith. Except as otherwise provided in § 1026.19(e), a disclosure is in good faith if it is consistent with § 1026.17(c)(2)(i). Section 1026.17(c)(2)(i) provides that if any information necessary for an accurate disclosure is unknown to the creditor, the creditor shall make the disclosure based on the best information reasonably available to the creditor at the time the disclosure is provided to the consumer. The “reasonably available” standard requires that the creditor, acting in good faith, exercise due diligence in obtaining information.
Section 1026.19(e) further clarifies that an estimated closing cost is in good faith if the charge paid by or imposed on the consumer does not exceed the amount originally disclosed with limited exceptions.
Loan Estimate: This form replaces initial TIL, GFE, Service Provider, Servicing Transfer & Appraisal Notices - 5 disclosures in one. It provides a summary of key loan terms and estimates of loan and closing costs in new format. It is intended to promote comparison shopping. It must be delivered to the consumer within three business days of application. Loan Estimate Explainer
Mailbox Rule: If the disclosures required under § 1026.20(e)(2) are not provided to the consumer in person, the consumer is considered to have received the disclosures three business days after they are delivered or placed in the mail.
Settlement Agent: In terms of the Closing Disclosure, Section 1026.38(a)(3)(iv) requires the name of the entity that employs the settlement agent. In general terms this is typically an escrow company or law firm.
No Tolerance Limits:
Prepaid interest; property insurance premiums; amounts placed into an escrow, impound, reserve or similar account. (§ 1026.19(e)(3)(iii)(A)-(C))
For services required by the creditor if the creditor permits the consumer to shop and the consumer selects a third-party service provider not on the creditor’s written list of service providers. (§ 1026.19(e)(3)(iii)(D))
Charges paid to third-party service providers for services not required by the creditor (may be paid to affiliates of the creditor). (§ 1026.19(e)(3)(iii)(E))
10% Cumulative Tolerance:
The charge is not paid to the creditor or the creditor’s affiliate (§ 1026.19(e)(3)(ii)(B)); and
The consumer is permitted by the creditor to shop for the third-party service, and the consumer selects a third-party service provider on the creditor’s written list of service providers. (§ 1026.19(e)(3)(ii)(C); § 1026.19(e)(1)(vi)).
NOTE: All links are current as of May 18, 2016