The mortgage industry has seen substantial change over the past few years. The Consumer Financial Protection Bureau (CFPB) introduced new Integrated Disclosure rules that amend existing requirements for mortgage disclosures:
Effective with RESPA applications received October 3, 2015, The Good Faith Estimate and Initial Truth in Lending Disclosure will be replaced with the “Loan Estimate” Disclosure. The HUD-1 Settlement Statement and Final Truth in Lending Disclosure will be replaced with the “Closing Disclosure”. PrimeLending is working diligently to prepare for the October 3rd implementation date and in an effort to keep our business partners informed, we compiled a brief FAQ on the new forms.
We will continue to enhance our procedures and share relevant information related to the implementation of the new rule as we get closer to October 3rd.
What is the Integrated Disclosure Rule?
When does the Integrated Disclosure rule take effect?
Which transactions are covered under the new TILA-RESPA Integrated Disclosures rule?
Does the definition of a loan application change under the new rules?
How does PrimeLending define “Consummation”?
How does PrimeLending define a business day?
Will PrimeLending allow consumers to waive the 3 or 7 business day waiting period to close for a bona fide financial emergency, as the rule allows?
Are there fees on the Loan Estimate/Closing Disclosure that are fixed and must always show?
Other than the fixed position fees, do the fees need to be displayed in a specific order?
Will the Loan Estimate and Closing Disclosures contain borrower signatures lines on the last pages?
Does PrimeLending offer electronic delivery of disclosures to borrowers?
What can Real Estate Agents do to ensure their loans close on time?
Are borrowers required to provide an affirmative Intent to Proceed for loan applications?
Does a borrower's signature on the Loan Estimate indicate Intent to Proceed?
Does a Loan Estimate expire?
May a creditor provide a revised Loan Estimate if the initial Loan Estimate was provided more than 10 business days before?
May the creditor provide a revised Loan Estimate after the Closing Disclosure is issued?
How long after a change in circumstance will the creditor have to re-disclose to the borrower?
What is a valid change in circumstance?
Does the TILA-RESPA Integrated Disclosure rule change tolerance calculations?
Who will prepare the Closing Disclosure?
Who will deliver the Closing Disclosure to the borrower?
Is there a separate borrower disclosure and seller disclosure?
How should seller credits be reflected on the Closing Disclosure?
Who is responsible for conducting the closing and disbursement of loan proceeds?
Will PrimeLending have a centralized mailbox for communication with Settlement Agents?
Will PrimeLending have an automated feed between its systems and Settlement Agents?
Will PrimeLending accept a mock HUD-1 in place of the Settlement Agent Fee Confirmation Worksheet?
When will the other closing documents be delivered to the Settlement Agents?
With the new TRID rules, will we be able to release the Loan Estimate and/or Closing Disclosure to a third party?
How will PrimeLending approve Settlement Agents?
Will PrimeLending require any additional information or certifications from the settlement agents as a result of TRID?
When must the Closing Disclosure be delivered to the Borrower?
What is the Mailbox Rule?
What triggers another 3 day waiting period when a revised Closing Disclosure is issued?
What is the process if circumstances change on the transaction that will impact the Closing Disclosure?
What is the procedure for dealing with changes at closing table?