Bon Voyage HUD-1!!!
Come get social with us at booth 625 as we bid the HUD-1 farewell and cruise to the new disclosures.
The Consumer Financial Protection Bureau wants mortgage lenders to stop using marketing services agreements, and it’s using the stick rather than the rules process to do so. The industry says no fair, that’s regulation by enforcement. What do you think?
2015 Florida Realtors® Convention & Trade Expo
Each year, the Florida Realtors® Convention & Trade Expo gathers thousands of Realtors looking to up their game. This years theme is Celebration 15; the event falls on August 19-23 and is held at the Rosen Shingle Creek in Orlando, Florida. The free two-day Expo is on Thursday and Friday–all you have to do is register. There are over 30 education sessions sorted into six learning tracks–technology, broker, productivity, trends, personal growth, and continuing education. Along with the Convention, the Trade Expo has over 200 exhibitors that come packed with promotional materials and exquisite raffle prizes. This years keynote speaker is Notre Dame’s former Head Coach Lou Holtz.
On October 3, 2015 the TILA-RESPA Integrated Disclosure (TRID) rule will go into effect. The Florida Agency Network (FAN) is leading the industry through uncharted waters to the new disclosures. Title agencies in the FAN network are prepped and ready to keep you afloat before, during, and after these industry changes. Join us at booth 625 as we say Bon Voyage to the HUD-1 and celebrate the implementation of the new Closing Disclosure (CD). Get social with us and enter to win an Apple iWatch!
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.
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.
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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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.
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.
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.
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.
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.
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:
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:
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:
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.
Wells Fargo announces plans for Closing Disclosure forms
In its quarterly newsletter to settlement agents, Wells Fargo addresses its plans for the Closing Disclosure forms. Please see its announcement below and visit the October Research, LLC publications for more updates as they develop. We are your single news source for in-depth analysis and what’s happening within your industry.
Effective August 1, 2015, our industry will be required to provide a new Closing Disclosure to our customers, as required by the TILA-RESPA Integrated Disclosure Rule. Now that this date is less than a year away, we’re hearing more questions from you about this topic, including:
Who will prepare the Closing Disclosure?
Who will deliver the Closing Disclosure?
How will processes change to enable delivery of the Closing Disclosure to the customer for receipt at least three business days prior to closing?
We’ve been listening to your feedback and understand that you want to know how we plan to meet these new requirements – particularly related to the new Closing Disclosure. Over the next year we will use this newsletter and other communications to provide you with answers to the above questions, as well as additional information to help guide you through these changes.
Responsibility of Wells Fargo and how we plan to meet the new requirements. The previous edition of this newsletter (June 23, 2014) focused on important details about “evidence of compliance” requirements for the Closing Disclosure. Examples include; the ability to retain and recall all versions of generated Closing Disclosures, retaining images and supporting data for all versions, maintaining system of record data for delivery timing and method, and the ability to prove both delivery and receipt of the Closing Disclosure.
We’ve closely reviewed these and all other requirements of the TILA-RESPA Integrated Disclosure Rule and explored a variety of options to ensure we consistently meet our internal compliance requirements as well as those of our regulators. We would like to share our views with you about these changes, and also hear your feedback via the optional survey link at the end of this article.
Determining the content of the Closing Disclosure. At Wells Fargo, we believe that we must continue to work closely with you to jointly determine the fees and other content required on the Closing Disclosure form. How and when we collaborate to develop this content is where we have significant opportunity to improve our processes.
We’ve already heard feedback from many settlement agents voicing concerns that this collaboration must take place earlierin the loan process than is typical today in order to avoid the rush closings that have become so common. In a future issue of this newsletter, we’ll discuss the process changes that are being developed to support timely preparation and delivery ofthe Closing Disclosure.
Generating the Closing Disclosure. The new Closing Disclosure is a blend of the existing Truth-in-Lending (TIL) disclosure and the Settlement Statement (HUD-1). It’s important to note that the new Closing Disclosure is governed by the Truth-in-Lending Act (TILA), not the Real Estate Settlement Procedures Act (RESPA). TILA provides different accuracy expectations and enforcement provisions than RESPA, as well as some differences in definitions, with associated risks and penalties for us that are much more severe than RESPA.
Today, Wells Fargo generates the TIL disclosures forall originated loans; we do not allow settlement agents to modify the content of this important compliance document. Looking forward, the same TILA scrutiny will be applicable for the new Closing Disclosure – and the lender is accountable for compliance. Therefore, after assessing all requirements and options, it hasbeen determined that WellsFargo needs to control the generation and deliveryof the borrower’s Closing Disclosure to consistently meet internal compliance and regulator expectations.
Delivering the Closing Disclosure. Evidence of delivering the borrower’s Closing Disclosure with receipt at least three business days prior to closing are critical requirements for us. The data to support this must be readily accessible for internal and external audit. We considered many factors, such as the large number of settlement agents who close Wells Fargo loans in local markets, their closing volumes, limited integration capabilities to provide compliance data to us, and the evolving use of electronic delivery within the Wells Fargo loan process.
At this point in time, we believe that this critical compliance evidence can only be provided if Wells Fargo deliversthe Closing Disclosure directly to our borrowers to meet the three-day requirement, including when a change occurs that requires the three-day clock to be restarted. We still must work closely with you to ensure we have accurate information on this disclosure, and because of the early collaboration needed, we are hopeful that this will create a smoother closing for everyone.
For purchase transactions, our view is that the settlement agent continues to be responsible for the seller’s information and will prepare and deliver the seller’s Closing Disclosure. A copy must be provided to Wells Fargo for our loan file in order to comply with the final rules.
Scheduling the closing. Scheduling the closing must remain a collaboration between all involved parties, just as it is today. But the new three-day delivery requirement for the Closing Disclosure will impact everyone involved in this process.
In a recent meeting with settlement agents, an example was used that really brings this impact into focus. Imagine you have three linked sale/purchase transactions that all need to close by the end of the month, each with a different settlement agent, different real estate agent and different lender involved. Not meeting the three-day delivery requirement on one of these linked transactions may delay the others. This scenario emphasizes how important it will be forus to work together to develop solutions that meet our customers’ needs and our compliance expectations.
Conducting the closing.Conducting the closing will continue to be the responsibility of the settlement agent, but with increasing focus on compliance with our closing instructions. As we have shared in previous newsletters, as expectations on lenders increase, so do expectations on our third party service providers.
Let’s work together to meet our customers’ needs
We continue to support the customer’s choice for their title and settlement service provider, as long as that choice enables us to consistently meet all applicable requirements. At Wells Fargo, we enjoy doing business locally and value our local relationships. With these new regulations, it is essential for you to understand the expectations of the regulations and of Wells Fargo, so we can consistently deliver high levels of quality and service to our customers.
Source: Title Report
We read an interesting article from NPR recently about one of the famous “Painted Ladies” selling at an astonishing 900K less than the asking price. They’re iconic of not only the city, but of the environment that we all feel San Fransisco has. There’s curb appeal built in—they’re the houses from Full House for goodness sake!
But in reading the article, we suddenly got another picture: that of any homeowner living in homes that are iconic enough to be recognized nationwide—dealing with the tourism and the hassles that come with a home that’s also an attraction. Some people like the attention but even celebrities don’t like the papparazi and other privacy invaders. Imagine buying one of these gorgeous homes and having pictures taken of you when you’re unsuspecting! That’s enough to turn off most homebuyers—and seemingly enough, it affected the sale of the Painted Lady in San Fransisco.
But, does this translate over to a home that’s not famous? Probably not. If the home’s not an icon of your neighborhood or city, then as much curb appeal as you can muster is usually a good thing. Let’s use the Painted Ladies of San Fransisco as an example of what curb appeal is. Overly famous or not, they are very pretty homes.
Firstly, the home is painted well. The name “Painted Lady” itself comes from the paint job, three colors used to bring out the architectural nuances of the home and to make the home stand out and have character. Curb appeal is all about the visuals and the Painted Ladies definitely have the visual elements going on for it.
There’s no yard to speak of at these homes, either, but the front of them are kept well and offer simplicity as their main attraction. Simple stoops, well-groomed trees, a clean exterior. Simplicity is the key here. Nothing is overwrought, but it’s all well thought out.
That’s key: every homeowner wants a nice looking home, but most of us work and complex looks or elaborate landscapes to keep up might not be to our taste. A simple cleaning and a new coat of paint every so often? Most can manage. Keep your homes simple.
Finally, the homes are generally accessible. They’re by a park on a main street. The location is very good. They’re right off the 101 and I-80 in San Fran, meaning that to get anywhere, it’s a simple commute. The university is just down the street. Between location and looks, the houses (if they weren’t famous) would net almost any asking price the owner wanted. (After all, while this Painted Lady sold for far below asking price, the owner still got $3.1 million for it. That’s nothing to sneeze at!)
The simple answer: no. Too much curb appeal generally isn’t possible. Keep up on the modern trends of exterior design, keep the place clean, well painted, and if you can, play up the conveniences of living there. That will help your home sell.
It’ll also help if you don’t let a show film at your home. That’ll keep the papparazi down. Otherwise, make your house look as good as you know that it is!