Tag Archives: Closings


General Requirements for the Loan Estimate Disclosure Post TRID

Stay on top of your game by familiarizing yourself with the general requirements that are going change in regards to the Good-Faith Estimate when the new TILA-RESPA Integrated Disclosure (TRID) rule goes into effect.

First of all, it is no longer going to be called a Good-Faith Estimate but will then be identified as a Loan Estimate.

Guess what?!?!

The jargon isn’t the only thing that is changing! The new disclosure carries with it some timing deadlines as well as a new look and lay out to the forms used instead of the familiar GFE.

The creditor, formally known as the lender, is required to provide all consumers of closed-end transactions secured by real property with a good-faith estimate of credit costs and transaction terms.

Mortgage brokers or creditors may provide the Loan Estimate to the consumer when the mortgage broker receives the consumer’s completed application and must be provided no later than 3 business days after the completed application has been turned in.

This new TILA-RESPA form integrates and replaces the current RESPA GFE and the initial TIL for these transaction types. Creditors must issue a revised Loan Estimate only in situations where changed circumstances resulted in increased charges.

These general requirement changes are meant to help better inform, protect and serve the consumer. The Florida Agency Network is ready to guide the industry through these changes and looks forward to partnering with you to streamline the process.

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Max Jackson

Max@FLagency.net.


3 Things to Keep in Mind When Writing Contracts Post TRID

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The TILA-RESPA rule (TRID) is proposed to go into effect this year on October 3. Buyer’s Agents will need to be aware of 3 main things: what type of loan product their client is using to purchase, the expected closing date and if their title partner is approved to do business with their client’s lender of choice. This is especially true when it comes down to writing the contract.

Woman signing a paperNot all Transactions are Covered by the New Rule

Most closed-end consumer credit transactions that are secured by real property are covered by the new rule.

Certain types of loans that are currently subject to TILA but not RESPA are subject to the TRID rule as well, such as construction-only loans, loans secured by vacant land or by 25 or more acres and credit extended to specific trusts for estate planning purposes.

TRID will not cover HELOC’s, Reverse Mortgages or Chattel-dwelling loans. Other exemptions include loans that are made by a person or entity that makes five or fewer mortgages in a calendar year. In addition to, housing assistance loan programs for low- and moderate- income consumers are partially exempt.

It’s All About Timingtiming

The typical timeline of the closing process is going to change not only in the form of new documents and disclosures but on the operational side of things as well. It will take some time for the industry to adjust to these changes. Just after the rule goes into effect, it is recommended to add on an extra 15 days to the closing date when writing the contract. Eventually, as the industry adjusts, the forecast predicts this will move us to a more paperless environment resulting in an even quicker closing timeline of less than the typical 30 days in Florida.

HandshakeIs Your Title Partner Approved to do Business With Your Client’s Lender?

Security is the main issue in regards to compliance between Title Agencies and Lenders due to the obligation both parties must protect Non-Public Information (NPI) data that is exchanged during a transaction. Lenders cannot do business with agencies that do not have compliant software to protect NPI. Technology has a big role in securing data. In an effort to comply, Agencies in the Florida Agency Network use SoftPro to secure the communication of NPI. You can find SoftPro on the American Land and Title Association’s Elite List of 12 Providers that can assist with compliance.

It is best to work with a preferred title partner that is compliant to ensure the least amount of hicups at the closing table. FAN has multiple agencies in our network that are ready to take on these changes. To find an agency in the network near you visit www.paramounttitlefl.com or contact Max@FLagency.net.

Check out what the CFPB has to say below or visit their site by clicking here:

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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.


Spring Outlook: Reports From the Field Suggest Better Days Ahead

By: Carrie Bay, DSNews.com

Despite the fact that key market indicators released in recent weeks have shown declines in home sales, anecdotal reports from real estate agents in the field suggest “better days are ahead for the industry,” according to commentary released Monday by the economic team at Wells Fargo Securities, LLC.

Even builders – who’ve endured possibly the steepest drop-off in business over this downturn – are optimistic heading into the spring, the economists note.

As a result, Wells’ economic team has nudged its forecast for home sales slightly higher, as the spring selling season appears to have gotten off to a strong start. They are now expecting sales of existing homes to top out at 4.50 million in 2012 and rise to 4.65 million in 2013. These annual projections compare to 4.26 million existing homes sold in 2011.

“While employment conditions have clearly improved and consumer confidence and spending have risen, we remain concerned about the lack of real after-tax income growth.

That said, the anecdotal evidence is hard to dismiss,” the economists write. 

Most real estate agents are reporting “significant gains in buyer interest and sales,” and these gains are organic rather than incentive induced, according to the Wells Fargo economic team. 

Unfortunately, they note that conservative appraisals and tight mortgage underwriting continue to undermine a large number of deals, however, they “suspect that the undertow from these two hindrances will subside over the course of this year, as the fog surrounding shadow inventories lightens up a bit and more lenders come back to the market.”

Unseasonably warm weather led to upticks in existing-home sales in December and January. Those gains were paid back with a 0.9 percent decline in February, but the economic group at Wells says the underlying trend remains positive and they expect to see further improvements as the spring homebuying season kicks off.

Distressed transactions still make up a considerable portion of overall sales activity and will continue to pressure prices through at least the first half of 2012, they note in the report. Real home prices are now back down to 1999 levels, as are price-to-rent ratios, according to the economists.

“We expect home prices to definitively bottom by the middle of this year, as the backlog of foreclosures finally begins [to] clear,” writes Wells Fargo’s economic team. “For properties not in foreclosure, prices have probably already bottomed, but should remain relatively low” given the competition from foreclosures.

 

 

Home Affordability Index Reaches Record-High Level

Reprinted from DSnews.com
Written by Esther Cho

Home affordability has reached the highest peak since 1970, which is when the data was first recorded, according to National Association of Realtor’s (NAR) housing affordability index. The index rose to 206.1 in January, and an index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced single-family home, assuming a 20 percent down payment and 25 percent of gross income for mortgage principal and interest payments.

“This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home,” said Moe Veissi, NAR president.

While projections about future mortgage rates and home prices have been mixed, NAR expects little change and anticipates affordability levels will stay high through 2012.

“Housing inventory levels have declined to a point where conditions are becoming much more balanced in much of the country,” Veissi said. “If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth.”

The index is based on the relationship between median home price, median family income, and the average mortgage interest rate.


Typical End of the Month

All of you in Real Estate and Lending can appreciate this…kind of a summary of closings for the month!

Realtors and Lenders- picture this scenario:

You have a listing now for 9 months that you JUST got a contract on that WAS NOT either $100,000 under list, or by a buyer using an unregistered LLC or the 123 Happy Street Trust, Jimmy Hoffa as trustee. It is a short sale, the sellers are going through a divorce, the husband moved out of state, and has told you several times “ I don’t care what EQUATOR needs, I’m not sending you anymore updated bank statements and current pay stubs, I should just let the bank have the house!”

After barely keeping the transaction together, convincing the buyers and/or their agent that it will just be a few more weeks before we close, and why they shouldn’t walk away from their $500.00 deposit that they borrowed from mom and dad, you are getting down to closing. The buyer’s financing is approved by a thread based on the wife’s second income working nights at Denny’s. The house appraised $10.00 over contract price after the 6th comp.

You just discovered the house 4 down from this one has some “settlement cracks” appearing on the garage wall.  A Tropical Depression appears to be forming off the coast of Africa, and your buyer hasn’t bound insurance yet.

The short sale is good until Friday.

The Rate Lock expires on Friday.

The 1st seller cant sign until Friday night after community service hours are served.

The 2nd seller’s mail-away doesn’t return until Monday.

The Lender has to have the package back in their office Monday before noon.

The Buyer’s moving van is sitting in the driveway.

You have been contacted by Verizon wireless for exceeding minutes allowed under the UNLIMITED plan….

Sound familiar?

It sounds familiar to us to. We call this scenario “Typical Friday”.

We are Hillsborough Title. We have been in business for 27 years. We have been here when you needed us. We go above and beyond the call of duty for our clients. We value our relationships with you, and are proud to call you our friends and clients.

Trust your transactions to the EXPERIENCED professionals who were here yesterday, today, and will be here tomorrow when you need us.

Visit www.hillsboroughtitle.com for contact information. Or contact any of our closers on how to make a killer martini- LOL!