TRID Mortgage Rules

 

Don't forget to email your dog license.

In review the new CFBP TILA - RESPA Integrated Disclosures
TRID adds a "lemon law" like disclosure at closing more strict than what was in place for refinance owner occupied mortgages. Now the forms TIL and Good Faith are simplified but No room for escrow or attorney nationwide to make estimate errors. All costs have to be right on the money.
This means Realtors can no longer add credits, rebates, seller credits for repairs or termite or softening credits to make buyers close on the last days. This would add additional wait days, require appraisers to review the value and buyers to wait. Rate locks may need to be extended accordingly.
New law that is pretty easy to follow but perhaps not so great for consumers. Added wait times is now what buyers borrowers and real estate agents want.

Here at Eagle and Universal Home Mortgage we are already working to implement these changes.
Educating Realtors to make money credit agreements upfront or to avoid last minute changes that will add days to a transaction.
It takes away my ability to offer cheaper 15 day rate locks as there may not be time to close and re-disclose if any numbers change, and they often do.

I can still close a loan in 30 days, or less.
copyright 2015 Caroline Gerardo Barbeau NMLS 324982

Mortgage Lingo

 It might feel a bit thorny at first...
I tend not to use the acronyms but
ARM is adjustable rate mortgage
DTI is debt to income ratio or the bottom line on your taxes compared to all credit and mortgage debts
GFE Good Faith Estimate a long form that requires some teamwork reading
HELOC- home equity line of credit can be a 1st or 2nd mortgage
HUD1- the detailed number excel sheet escrow prepares with all costs
PMI private mortgage insurance- insurance for the lenders on the loan
LTV- loan to value or appraised value vs loan amounts
MIP mortgage insurance premiums
PITI principle interest taxes and insurance the whole payment
RESPA the real estate settlement procedures act
TLA truth in lending
There you have it

Caroline Gerardo Senior Loan Officer NMLS #324982 Cell 949-637-8190 Office 949-784-9699 eFax 855-883-4303 CarolineGerardo@eaglehm.com www.eaglehomemortgage.com/carolinegerardo Committed to Seeing You Home. Eagle Home Mortgage 100 Spectrum Center Drive Suite 500 Irvine CA 92618 NMLS #849059 CA #813I609 Universal American Mortgage Company of California, dba Eagle Home Mortgage of California. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. RMLA #4130383, NMLS #252392, NV #3244. Certain restrictions apply. This is not a commitment to lend. Applicants must qualify.

Mortgage Checklist

Caroline Gerardo Senior Loan Officer NMLS #324982 Cell 949-637-8190 Office 949-784-9699 eFax 855-883-4303 CarolineGerardo@eaglehm.com www.eaglehomemortgage.com/carolinegerardo Committed to Seeing You Home. Eagle Home Mortgage 100 Spectrum Center Drive Suite 500 Irvine CA 92618 NMLS #849059 CA #813I609 Universal American Mortgage Company of California, dba Eagle Home Mortgage of California. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. RMLA #4130383, NMLS #252392, NV #3244. Certain restrictions apply. This is not a commitment to lend. Applicants must qualify.

Homestyle Renovation Loan

Homestyle Renovation Loan a great mortgage product when you are refinancing or buying a property that you want to improve. Add value to the home, fix up, finance like a construction product

CFPB Nevermind Mortgage Bankers

BREAKING NEWS

Today, the CFPB has announced that they will issuing a proposed delay to the Know Before You Owe rule until October 1, 2015. Nevermind

Mortgage lenders nationwide scrambled to figure out how they were going to be zero tolerance with escrows and attorneys who can't predict all their costs upfront. Lenders have spent millions on legal advice and computer updates to comply but a clerk failed to check US law.. cough 

CFPB Director Richard Cordray issued this statement, "The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015. 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. 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."
What? Because school starts in September we waited until October 1st? Mortgage lenders and bankers aren't ruled by back to school???

Roseann Roseannadanna Gilda R. we miss you!

Rules for Mortgage Disclosure ( burn the old rules)

Oh no!!! the Final Integrated Mortgage Disclosures Rule from the Consumer Financial Protection Bureau (CFPB) is here. Don't worry it's not going to be the final "final" some senator is going to make up new procedures that make little sense. Now the CFPB lights a little gasoline on your desire to close quickly, sorry this tastes bad but its for your own good. How many times do borrowers avoid reading Truth in Lending and Good Faith Estimates? In a transaction I send them more than once, now we will be sending again at closing. Welcome to the new improved Act and the Real Estate Settlement Procedures Act.

The most important change is the mandate of the use of two new documents: the LOAN ESTIMATE and CLOSING DISCLOSURE.

• Except for reverse mortgages, clients will no longer receive an initial Truth in Lending (TIL) form and Good Faith Estimate (GFE), or a final TIL form and HUD-1 Settlement Statement (HUD-1). This is not a good thing. 

• The initial TIL and GFE will be replaced with the Loan Estimate, which must be provided within 3 business days of loan application. (Business days will include Saturdays if the lender is open to the public and carrying on substantially all of its business functions.)  A New name for TIL and GFE fails at being helpful to Borrowers - here is why: escrow and states with attorneys are often Mostly frequently wrong about their costs upfront. 

•  The final TIL and HUD-1 will be replaced with the Closing Disclosure, which must be provided at least 3 business days prior to loan closing. This means borrowers cannot close on their loan until at least 3 business days after receiving the Closing Disclosure. (Business days will include all calendar days except Sundays and certain enumerated legal holidays.) 

• These documents go into effect for loans on which a loan application is taken on or after August 1, 2015.

The initial TIL, GFE, final TIL and HUD-1 will continue to be a part of the closing process for reverse mortgages and for transactions on which an application was taken before August 1, 2015. 
 

I planted some nice succulents in these old metal gas cans in memory of the old procedures. If you want one as a closing gift, just ask. 

Ladera Ranch Open House Today

17 Granville Ladera Ranch open house today 1:00 - 4:00 PM Sunday
Aldenhouse condo priced to sell quickly
Come visit the lovely neighborhood.
This unit is 1612 square feet lot 1557 unit built 2001

Listing agent is Miriam Hosseini of Royalty Mortgage and Real Estate

Come stop in and have a glass of iced tea!

Mortgage Rates

Mortgage rates jumped significantly higher today, bringing mortgage loans to highest levels of 2015.  The most prevalently-quoted conventional 30yr fixed rate for top tier scenarios had briefly made it back to 3.875% at the end of last week.  While a few of the most aggressive lenders remain at 3.875% most are now easily back up to 4.0%, and some are already up to 4.125%.  Today's loan rate sheets are similar to the other weakest days of the year on May 13th, May 6th, and March 6th. 
The underlying market volatility driving today's move can be considered an opening act for the big show that begins tomorrow and runs through Friday.  Unlike those days where we can point to obvious sources for market movement, today's move is most readily explained by the domestic market's relationship with European markets where economic data and headlines concerning a potential Greek debt deal caused European rates to jump.  (The more it looks like Greece will get some sort of 'deal,' the higher rates go in the stable countries, and it's those countries that have the most direct effect on US rates).

So do we lock? Do we wait?


European influences notwithstanding, financial markets could simply be taking defensive positions ahead of the big ticket events.  As we discussed yesterday, it's a high volatility environment.  Risk outweighs reward when it comes to locking or floating here.