Early RESPA Disclosures 1024.6 – Settlement Book 1024.7 – GFE 1024.21 – MSDS List of Providers – Appendix C Counseling List - 1024.20 Reg X requires these disclosures to be provided or mailed within 3 business day after application: Settlement Cost Booklet (first lien purchase) refinancings) (“Your Home Loan Tool Kit” on 10/3/15 for TRID) Good Faith Estimate (LOAN ESTIMATE) List of service providers (if borrower can shop for required 3rd party settlement service) Mortgage Servicing Statement (only on 1st lien mortgages) List of HUD-approved homeownership counseling organizations CFPB Guidance An Interpretive Rule issued November 14, 2013 instructs banks to provide a list of the 10 organizations closest to the applicant’s location. To find this list, go to the CFPB’s website (www.consumerfinance.gov) and conduct a search for “homeownership counseling.” Simply enter the applicant’s zip code to obtain the appropriate list. MUST BE UPDATED EVERY 30 DAYS. Denied/Withdrawn & definition of business day If the application is denied or withdrawn within the period, these early disclosures are not required. Under RESPA, a business day is a day on which the offices of the bank are open to the public for carrying on substantially all of the bank's business functions. PRIOR TO CLOSING– NINE Issues Ability to options Flood Insurance Appraisal or Valuation Special HPML appraisal High-Cost Mortgage Rules (HOEPA) Corrected Early Truth in Lending Disclosure HPML Escrow Account Homeownership Counseling Adverse Action EFFECTIVE 10/3/15 FOR COVERED APPLICATIONS THE CLOSING DISCLOSURE MUST BE RECEIVED 3 BUSINESS DAYS PRIOR TO CLOSING! SEE “TRID CHECLIST IN THE APPENDIX”. The Closing Disclosure is considered “received” if mailed 3 days prior to the required date; by proof of e-sign receipt, or proof of overnight delivery, or proof that it was delivered in person. NOTE: - See the “Loan Checklist” pages in the Appendix for more information for TRID Loans
the consumer's income, the consumer's social security number to obtain a credit report, the property address, an estimate of the of the property, the mortgage loan amount sought any information deemed necessary by the creditor 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 OLD – TIMING OF DISCLOSURES and VERIFICATION OF INFORMATION NEW – TIMING OF DISCLOSURES and VERIFICATION OF INFORMATION Provide the GFE and early disclosures within 3 business days of the application date unless the request is denied in 3 business days. The applicant should not be charged a fee, other than a credit report fee, until the GFE has been provided. Verification of information may not be done until the applicant indicates an “intent to proceed” See the CFPB “ DISCLOSURE TIMELINE” It is14 pages long, link in the Supplement The applicant should not be charged a fee, other than a credit report fee, until the GFE has been provided. Verification of information may not be done until the applicant indicates their “intent to proceed”. If this intent is given more than 10 business days after the Loan Estimate was delivered or placed in the mail, the creditor may use a revised Loan Estimate. ADDITIONAL RESOURCES FOR INTEGRATED DISCLOSURES ARE IN THE APPENDIX COVERAGE OF FLOOD REGULATION General Rule The regulations apply when (MIRE) making, increasing, renewing or extending a loan: Secured by a building or a mobile home Located or to be located in an area determined by the Director of the Federal Emergency Management Agency to have special flood hazards. Note: Sections dealing with conducting and documenting determinations (and the fees charged for conducting a determination) apply to loans secured by buildings or mobile homes, regardless of location.