Specific Record Retention Requirements for the TILA-RESPA Rule

Blog Headerarchival-records-storageThere are specific record retention requirements of the closing disclosure for the TILA-RESPA rule. Do your lending partners comply?

The creditor must retain copies of the closing disclosure and all related documents for 5 years after consummation.

If the creditor sells, transfers or no longer has interest in the loan the creditor must provide a copy of the closing disclosure to the new servicer.

There is no specific requirement on how the copies must be retained leaving the opportunity to streamline our lives through technology.

You can take a closer look below or to view the CFPB’s Compliance guide here.

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The Florida Agency Network is an industry leader in compliance. All agencies in the Florida Agency Network are prepped and ready to take on this industry game changer. It is important for your title partner to be compliant with the TRID rule once it goes into effect.

To find out more about partnering with a title agency in the network contact:

Max Jackson

Max@FLagency.net

digital document storage


When is the CFPB going to Implement the TILA-RESPA Integrated Disclosure Rule?

As it stands now, the CFPB has proposed the TILA-RESPA Integrated Disclosure (TRID) implementation date be postponed until October 3. The rule is open for public comment until July 7, 2015 leaving the industry grasping for some much needed clarity until a final rule gets locked down.
According to the Congressional Review Act (CRA), before any major new rule goes into effect Congress and the Government Accountability Office (GAO) must receive a rule report. It must contain a copy of the rule and be received at least 60 days prior to the rule taking effect. The CFPB’s failure to turn in this two-page report to Congress on time is the reason for this much appreciated delay.

Stay tuned as we keep you up to date and don’t forget, the best way to prepare yourself is to join the conversation. In an ever changing industry it is important to partner up with a title agency that has aligned and complied with the new regulations. Agencies powered by the Florida Agency Network (FAN) are prepped and ready to lead the way during this immense industry change.

Find out more about partnering with an agency in the network:

Max Jackson

Max@FLagency.net


It’s Going Down in 99 Days!

Blog Header The TILA-RESPA rule goes into effect October 3 of this year. What transactions does it apply to? It applies to almost every closed-end consumer credit transaction secured by real property. Check out what the CFPB had to say below:

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In an industry that is constantly modifying it is important to partner with those who stay abreast of the changes. Title agencies that are in the Florida Agency Network (FAN) have been a part of the conversation and are ready to lead the industry through these changes. To find out more about partnering with an agency in the network contact: Max@FLagency.net

 Curious about compliance with the TILA-RESPA rule?

Check out the CFPB’s site.


What is TRID?

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The TILA-RESPA rule (TRID)– is meant to make the disclosure documents used during a transaction more consumer friendly and to move the industry towards a paperless transaction. The rule combines the current four disclosures. Check out the CFPB’s break down below:

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Don’t recognize the new Jargon? Here is a handy chart to help with the transition: 

 New Jargon

To find more specifics visit:

www.closing-disclosure.com

www.cfpb.gov


Stick Around For Our Countdown!

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The industry’s much anticipated delay to implement the TILA-RESPA Integrated Disclosure (TRID) was announced last week. The new regulation had the initial launch date set to be August 1, 2015 but has now been pushed back later this year to October 1.

The Consumer Financial Protection Bureau’s Director, Richard Cordray stated, “We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks.” Whatever the reason the industry as a whole seems to have let out a huge sigh of relief.

These new documents are meant to be more consumer friendly by consolidating the TILA-RESPA forms and making them easier to understand. The new regulations give the consumer more time to review the total costs of their mortgage and to ask any questions they may have in regards to their loan terms. The Loan Estimate is due to consumers three days after they apply for a loan, and the Closing Disclosure is due three days before closing. These two requirements along with software compliance and security issues have thrown the industry into a frenzy as they try to comply by the deadline.

The best thing you can do to prepare yourself is to join the conversation. In an ever changing industry it is important to partner up with a title agency that has aligned and complied with the new regulations. Agencies powered by the Florida Agency Network (FAN) are prepped and ready to lead the way during this immense industry change. Tuesday, June 23, 2015 will mark the 100 day countdown until the CFPB’s implementation of the TRID.

 It’s going down  —  10.01.15  —  Stick around for our countdown!  

Please Note: Since posting the CFPB has submitted an amendment to their proposal further delaying the effective date to October 3.


It’s Goin’ Down!

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Due to lack of preparedness in the industry, CFPB has delayed implementation of the TILA-RESPA Integrated Disclosure (TRID).

It’s important to partner up with a title agency that is ready for the up coming industry changes. Title agencies powered by the Florida Agency Network are compliant, trained and ready to take on these industry changes.

It’s going down on Oct. 1, stick around for our countdown!

Find out more about partnering up with a title agency powered by the the network : Max Jackson at max@FLagency.net

Please Note: Since posting the CFPB has submitted an amendment to their proposal further delaying the effective date to October 3.


CFPB Will Push TRID Implementation to Oct. 1

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After months of denying requests from real estate, mortgage and settlement service industry professionals and trade groups to either delay implementation of the TILA-RESPA Integrated Disclosures (TRID) regulation or agree to enact a “hold harmless” enforcement period, the Consumer Financial Protection Bureau (CFPB) announced today that it will push the Aug. 1 implementation deadline to Oct. 1.

The industries that will be affected by the regulation will now have two more months to prepare their mortgage processing systems, staffs and partners for the sweeping mortgage transaction changes.

The new implementation date came as a relief to many who have been concerned about their ability to comply with the new rule due to technical and operational challenges — not to mention tackling the onslaught of other mortgage industry regulations thrown at them in the last two years — but many are wondering why the bureau had a sudden change of heart.

Richard Cordray.
CFPB Director Richard Cordray

According to CFPB Director Richard Cordray, the bureau “made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks. We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.”

In its announcement, the CFPB did not elaborate on the nature of its “administrative error.” However, a spokesman from the CFPB told Inman that the bureau failed to timely notify Congress about the Aug. 1 deadline, a responsibility it has under the Congressional Review Act, which requires agencies to submit the rule to Congress and the Government Accountability Office 60 days before the effective date.

Had the CFPB submitted the rule to Congress and the GAO, its submission should have included a copy of the rule; a concise general statement relating to the rule, including whether it is a major rule; and the proposed effective date of the rule.

Many in the industry are curious about why, after months of trade group letters and comments, testimony in congressional hearings to push for a lenient enforcement period through the end of the year and even federal legislation calling for the CFPB to hold the industry harmless as it adjusts to the sweeping changes, the bureau refused to delay implementation — only to abruptly reverse course less than two months before the Aug. 1 deadline for something as seemingly innocent as an “administrative error” and children starting a new school year.

And some are wondering if that’s the real reason behind the delay.

On March 26, Inman reported that one industry professional, speaking on condition of anonymity, predicted that the CFPB would “announce a delay right after June 18,” which happened to be the date that mortgage industry software provider Ellie Mae planned the release of an update to its mortgage management system, Encompass.

The update included TRID support, but for software that supports about 80 percent of the loan origination systems at small and midsized banks to be released less than 60 days before TRID implementation — during the busy summer months, no less — there are bound to be glitches, our source said.

Other sources tell Inman that other software used by some of the top mortgage lenders and settlement agents in the country “blew up” this week.

Regardless of the reasons behind the CFPB’s announcement, many in the industry are breathing a collective sigh of relief and retooling their preparation efforts for the fall.

“You’ve got to give them credit for pushing the effective date to October,” said Michelle Korsmo, CEO of the American Land Title Association (ALTA), which from the CFPB’s release of the final rule in November 2013 has been the industry trade group that has taken the lead in the educational, training and preparation efforts. “The bureau could have changed the effective dates for a shorter period of time.

“Clearly, the bureau listened to the concerns that industry has for consumers. Consumers would be helped even more if the CFPB also announced a specific hold-harmless period for industry to understand how the forms will work in real-life transactions. Under TRID, some mortgage lenders and settlement service providers may initiate additional risk management tactics that could slow the closing process for homebuyers.”

National Association of Realtors President Chris Polychron said in a statement that “Realtors appreciate that the CFPB has demonstrated an understanding of the need for additional time to accommodate the interests of the many consumers and providers. We will continue to work with CFPB to minimize any possible market disruptions or uncertainty that could develop following the implementation.”

And Mortgage Bankers Association President and CEO David H. Stevens lauded the CFPB for continuing “to prove itself capable of working in a transparent, constructive manner throughout this process.”

“The complexity of this rule, which impacts not just mortgage disclosures but also the business processes behind the entire real estate transaction, warrants the additional time to get it right and ensure that consumers are not adversely affected by the transition,” Stevens said.

“MBA will be providing comments on this proposal to recommend the best way to implement the delay in a manner that protects consumers and mitigates disruptions for lenders in the middle of this complex conversion.”

We likely won’t know the full details of what happened at the CFPB until it issues an official proposed amendment to delay the effective date of the TRID rule. The public will have an opportunity to comment on this proposal, and a final decision is expected shortly thereafter.

But we are already hearing that some companies that have been testing new or updated mortgage processing software in the last two weeks are experiencing significant technical glitches.

Source: www.inman.com


Florida AG Accuses Clearwater Firms of Fraud in Property Deals

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Attorney General Pam Bondi filed a complaint against two Clearwater businesses and their president, alleging the companies defrauded consumers out of thousands of dollars in a land buying scheme.

According to the complaint, Property Solutions International Corp., Premier 1 Property Inc. and Marvin Scott promised consumers they could sell their property for many times the value of the land.

The defendants, who also conducted business using the names Coast to Coast Land and FSBO Property Solutions, charged upfront fees on average of $2,250 for brokering the deals, sometimes promising to refund most of the money, but rarely following through on those promises, a statement said.

State records list Scott as president of Property Solutions International in Clearwater. He’s also listed as president of Premier 1 at the same Clearwater address, although Premier 1 was administratively dissolved in 2013 after not filing an annual report, the Division of Corporations said.

The complaint seeks restitution for 34 complainants who paid more than $70,000 to Scott and the two businesses.

Source: www.bizjournals.com


I Hate the Open-Plan Kitchen—and Amazingly, I’m No Longer the Only One

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A few years ago, my husband and I moved into a gorgeous Craftsman-style house in the Pacific Northwest. It was chockablock with original details like dark wood paneling, stained-glass transom windows … and a 100-square-foot, totally enclosed kitchen in a faux country style—think yellow oak cabinets paired with linoleum countertops. And though we found most of the historical elements quite charming, the kitchen needed a complete overhaul.

So we hired an architect who hatched a plan to steal some space from the nearby office area. But he didn’t want to stop there. He also wanted to knock down the wall between the kitchen and the formal dining room, to give us the open-concept kitchen that it seems just about everybody else has these days.

We balked. Lose the cool, old-fashioned swinging door? And the opportunity to leave my kitchen a mess during dinner parties?

Heck no. Because after having grown up in a New York City apartment where public and private spaces were blurred—both bathrooms were en suite, so guests had to traipse through our bedrooms to use the loo—I loved the idea of an older house’s separate rooms. (Remember Julia Child’s famous quip: If you drop something, “you can always pick it up if you’re alone in the kitchen. Who is going to see?”) To me, they aren’t isolated and inconvenient, but rather refined and gracious. Though open kitchens may be all the rage, let me dare to say right here: I’m anti-open kitchen.

For much of domesticated human history—until mid-past century—I wasn’t alone in the enclosed-kitchen camp. Walk into an American home built before the 1950s, and you’ll most likely find the kitchen tucked away in a far-off corner of the main floor. Rarely visited by guests and not a place where the family spent much time, the kitchen was separate and functional, not designed for hanging out.

“The equipment was usually along the periphery,” explains Virginia McAlester, author of “A Field Guide to American Houses,” “meaning that anyone who entered the kitchen was most likely greeted by the cook’s back.” Or they wouldn’t see the cook at all—how often does Lord Crawley visit Mrs. Patmore on “Downton Abbey”?

Only that wasn’t thought of as hugely rude or anything, because most social interaction occurred either in front parlors (for welcoming guests) or in dens (primarily just for family). Not having to touch a hot pan was a sign of status.

These days, the kitchen is the place to entertain, thanks in part to mid-20th-century technology that made appliances fit into the cabinetry, not stand freely and hoard all the free space.

“The kitchen was becoming quieter, cleaner, better organized and easier to work in,” writes Porch.com. “In essence, the kitchen was becoming a source of pride.” These days, you flip on HGTV or pick up a flier for an open house in your neighborhood and chances are they’re heralding an open-concept kitchen. They’re great for wooing guests while cooking, or so goes the current real estate lore.

“Food preparation is central to how we entertain and socialize,” says Erin Gallagher, chief of insights for the Research Institute for Cooking & Kitchen Intelligence. “It’s how we live today.” Nine out of 10 kitchen designers, she says, report that their clients want their living, dining, and cooking spaces to flow together.

There’s a practical reason for their popularity, too. In an age when houses are getting smaller for the first time since 2007 (the median size of a new U.S. home in 2010 was 2,169 square feet, up from 1,525 square feet in 1973 but down from the 2007 peak of 2,277 square feet) and house prices are rising like never before, open kitchens maximize space and minimize cost. In a closed-plan house, there are more doors and walls, more trim and details needed to delineate various rooms. And to build all that requires more tradespeople, like electricians and carpenters. Consequently, open-plan kitchens have become the new normal. There’s more natural daylight in an open kitchen, too.

And here’s another bitter pill for the fan of the closed-off kitchen to swallow: Open-concept kitchens might help boost a home’s resale value.

“The most common conversation I overhear when showing a property to potential buyers is ‘Is this wall load-bearing? Can we knock it down to open things up?’” says Arthur Jeppe, a principal Realtor® with Read & Jeppe in Newport Beach, CA. “So no matter how gorgeous a home is, it will most likely sell for less if the kitchen is separate.”

OK, so those are compelling reasons, but I remain unconvinced. In part it’s because I find it beyond challenging to turn out culinary masterpieces (or even just a nice meal) while guests are chatting around me in the kitchen, and also because I just don’t believe it’s a good time to “entertain” anyone while I’m wielding a knife and managing fire. Plus, I’m happier when my whole world—especially my living room furniture—doesn’t smell of bacon grease.

A cozier, rustic kitchen

Astronaut Images/Getty Images

A cozier, rustic kitchen

As it turns out, others might be starting to see things my way. Hilarious and blasphemous blog posts detailing the difficulties of actually living with open floor plans have started to dot the Internet. (“‘Oh my gosh I dropped the chicken!’ In a perfect world, no one would know. Open floor plan?  Well, it’ll be tweeted in minutes.”)

Some architects are seeing an uptick in clients asking for separate kitchens.

“Many of the requests are from older clients, because that’s what they’re used to,” says Timo Lindman, a New York–based residential architect.

But interest is also stemming from sophisticated younger clients rediscovering the value—emotional, if not financial—in drawing a line between public and private space.

“Many properties are designed for a mass market, and in order to appeal to as many people as possible, they include trends like an open-concept kitchen,” says Lindman. “But there’s also a market for interesting, well-thought-out separate spaces. It’s just that they appeal to a group with a more curated aesthetic.”

Tyler Merson, owner of Codfish Park Design in Chatham, NJ, and a former professional chef, is also with me regarding separate kitchens.

“People think they should love open-plan kitchens because they’ve been told to love them,” says Merson, who thinks galley-style kitchens are underrated. “They can be fine for low-impact prep like chopping, but real cooking is messy work and requires a great deal of concentration.” (Man, it feels good to be validated by a professional!)

So could it be a backlash against open-concept kitchens is emerging? Or maybe this is now just one of those things that you have to be either totally for or dead set against. Either way, I’m glad we bucked the trend and kept our separate kitchen. And if you ever come to my house for dinner and experience just how often we set the smoke alarm off, you’ll be glad we did, too.

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So which kitchen is right for you? Here are a few concepts to consider as you decide:

What kind of cook you are

If you tend to do takeout or don’t mind your mess being visible, then an open-concept kitchen could work for you. But if you’re into preparing elaborate meals and prefer to concentrate while cooking, then consider a space that’s separate from your home’s main living areas.

Think things through

In most states, changing walls requires building permits—and structural modifications can affect your home’s resale value. So before making plans to knock down an existing wall or rough in another, figure out if your long-term plan includes staying put or needing to appeal to other homebuyers in the future.

Be realistic

It’s easy to be dazzled by professional photos of dream kitchens, but what works well in one space might not in another. Consider your own home’s ceiling height, amount of wall space, windows, and views when creating a plan to fit your kitchen and living space.

Work with someone who sees beyond trends

Some architects value separate kitchen spaces while others think they’re outdated. So if you’re considering closing off your cooking space or shopping for a house that features a closed kitchen, consider working with a builder or Realtor who has an eye for creative elements that make separate spaces feel airy (think a bank of windows, skylights, or glass doors).

Source: www.realtor.com


HOA Threatens Lawsuit Over Homeowner's Wheelchair Ramp

HOA

A Brentwood, Tennessee homeowner’s association is threatening to sue a family if they don’t take down a wheelchair ramp in the next week. Per KPHO:

Charlotte Broadnax retrofitted her house with a small ramp after her husband Michael Broadnax suffered a stroke late last summer.

As a result, the homeowners association for the Woodlands of Copperstone is threatening to sue.

“The association demands that within 14 days of the date of this letter, you remove the wheelchair ramp and restore the exterior of your home,” Charlotte Broadnax said, reading from the letter.

” [The Declaration] authorizes the association to come onto your property and remove the ramp and charge you with the work,” Charlotte Broadnax read.
The letter then reads, “If you force the association to sue you, it will seek a court order” and charge the Broadnax’s for attorney’s fees

Unfortunately, this is not the first time a homeowner has experienced issues with an HOA. 

HOA super liens are an issue as of late. The court recently upheld a law that allows homeowners associations to foreclose on homes ahead of first-mortgage providers, giving HOA assessments “super-lien” status that extinguishes first deeds of trust.

There is a constant debate over the true pros and cons of living in a HOA. While some buyers view HOA rules negatively, others say the regulations protect home values and the community for everyone, an article from Bankrate said.

At least for the Broadnax family, the situation appears to be looking up.

Kathleen Sutherland, director of training and technical services at Ghertner and Company,which manages the homeowners association, sent the following statement to Channel 4.  

“The governing documents for this community require that all exterior improvements receive prior approval. A letter was sent to the owner regarding the ramp as no application for approval had been received.

“The board did not know the ramp was for the homeowner, Mr. Broadnax. The association would like to work with the owners on a compromise regarding the appearance and location of the ramp and compliance with any applicable codes.”

Source: www.housingwire.com