California Per Diem Interest/Summary:
One more detail about TRID to make certain mortgage companies, banks and lenders all make sure
everything is dotted, crossed, initialed and signed. Golden new rules for mortgage loans, home loans, HELOC's and just about any loan to a buy or refinance real estate
Interim Interest - A borrower is not required to pay
interest for more than one day prior to the recording of the mortgage or deed
of trust. A borrower is not required to pay interest for more than one day
prior to the date that the loan proceeds are disbursed out of escrow, or
disbursed to the borrower, or to a third party on behalf of the borrower. [CA
Civil Code 2948.5]
Exception permits charging interest for weekend or holiday
to facilitate recording or disbursement on following day if agreed to by borrower
per required disclosure (California Residential Mortgage Lending Act Per
Diem Interest Disclosure; Destiny form and similar form in Encompass).
California regulator exam in 2012 found five instances of the
disclosure signed in blank (no issue with amount of interest) and two instances
of interest charged for the weekend without the borrower’s consent (checked NO
on disclosure).
The attached California Residential Mortgage Lending Act Per
Diem Interest Disclosure is included in our closing loan documents.
Unsigned loan documents stall selling of the loan and are costly and time consuming to ask Borrowers to re-sign and mail back and forth.
Unsigned loan documents stall selling of the loan and are costly and time consuming to ask Borrowers to re-sign and mail back and forth.
Underwriters are required to add the
following condition to all California loans:
Closing agent to provide the California Per Dium Interest Disclosure Form to the Borrower /customer when applicable and is responsible for filling in the numbers in the blank spaces for the Borrower /customer that would be charged and is responsible to make sure the Borrower initials the form
Funders are required to review the form and to add verbiage
to the closing instructions advising Settlement Agents of the correct way to complete
and to be sure buyer chooses an option
Welcome to the Temple of TRID where we get it perfect.
Caroline Gerardo
Eagle Home Mortgage
Universal American Mortgage
nmls 324982
(949) 784- 9699
