Temple of TRID

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.

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

Orange county bus smoking

The 90 orange county bus today to point the brakes in the rear caught on fire 

oops

Tropical Storm in Orange County Fills Creek

First rain in Orange County California in a long time.
Don't forget to clean out your rain gutters and drains.
El Nino tropical conditions seem to be here in Laguna Niguel.

VA Mortgage Loans

VA mortgage loan tips and topics:

·         A veteran’s basic VA entitlement is 36,000.  This will provide sufficient entitlement to cover a loan amount of $144,000.  This is found on their Certificate of Eligibility issued by the VA.  Only if our subject’s loan amount exceeds $144,000 does the bonus entitlement kick in. 

·         Entitlement can be even lower than 36,000 if the veteran has already used entitlement for another VA loan and has not yet disposed of that property, or if the veteran previously defaulted on a VA loan.  The Certificate of Eligibility will show you how much entitlement is currently available.  The veteran must have a combination of downpayment and available entitlement to cover at least 25% of the loan amount. Please read the program guidelines carefully and use one of our eligibility worksheets for exact loan amount calculations.

·         The Certificate of Eligibility with an Active Duty Service Member condition – the veteran MUST still be on active duty or he/she loses all eligibility for VA loan financing.  If your veteran’s Close of Escrow has this condition and the veteran is no longer an active duty service person you MUST obtain a Certificate of Eligibility without this condition.  

Questions?   Call me (949) 784-9699

C G at Eagle Home Mortgage

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Eagle Home Mortgage