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A. TRID is an acronym for TILA/RESPA Integrated Disclosure. It is the new integrated disclosure rule that is effective for applications received by the loan originator on or after October 3, 2015. Under this new rule, a new disclosure form called Loan Estimate (LE) replaces the existing GFE and initial TIL disclosures (and Appraisal and Servicing notices—See Questions 24 & 25). Also, a new disclosure called Closing Disclosure (CD) replaces the existing HUD-1 and final TIL disclosures at closing. These changes are effective with all applications taken on or after October 3, 2015.
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A. Yes, Platinum has a resource portal on its website, www.platinumez.com; this will be a great place to start. However, the information provided should not take the place of your own research and review of the changes.
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A. Yes, there is still a 7-day waiting period. On all loan types, the waiting period would commence when the initial disclosure (LE) is delivered, either in person or placed in the mail to the applicant. However, for brokered (wholesale) loans, this eliminates the existing additional waiting period from Platinum’s disclosure date for loans prior to TRID (i.e., waiting period from Lender TIL date no longer applicable—waiting period will be based on initial broker LE date for loans with initial application date on or after October 3, 2022).
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A. Yes, but there are some differences. For example, under the new rules, some categories of fees that are today included in the 10% tolerance category will become zero tolerance fees under TRID. For example, any up-front MI premium (including VA Funding Fee, FHA UFMIP, USDA Guarantee Fee), Appraisal fees, and any fee charged or collected by an affiliate of either the creditor or broker are now zero (-0-) tolerance. Check our TRID portal on Platinumez for a tolerance chart.
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A. Yes, Platinum Mortgage will require these new disclosure forms for all transactions with an application date on or after October 3, 2015.
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A. Yes, Platinum has determined that the time/time zone we will require on all Loan Estimates and rate locks will be 6 p.m. EDT.
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A. No, the new rule has the same timing requirements as the GFE. The initial LE must be sent to the borrower by the broker/originator within 3 business days of the application date.
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A. The new rules do allow a creditor to use a logo on the LE. However, we caution against this because the rules for brokered transactions do not allow a broker’s logo on the disclosure forms.
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A. You must use a consistent address throughout your documentation. In other words, you must use the same address printed on the applicant’s 1003 as you use on the Loan Estimate (LE).
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A. No, the signature line on the LE is only used to document the receipt of the LE. This is not to be considered intent to proceed. An updated model “Intent to Proceed” form will be posted on Platinum’s website. However, you may also use any standard form from your software provider that documents the borrower’s intent to proceed by either the borrower’s signature OR the LO’s signature confirming the borrower verbally expressed an intent to proceed. As a reminder, fees other than a credit report may not be collected prior to borrower expressing intent to proceed.
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A. There is no place for the aggregate adjustment to be listed. Therefore, your ‘cash to close’ will be an estimate.
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A. An application consists of the submission of the following six (6) pieces of information: name; income; Social Security number; property address; and estimate of the property value (or sales price); and, the loan amount. The discretionary 7th item has been removed. You may not add a requirement for another item.
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A. You are required to act in good faith and exercise due diligence in obtaining the information necessary to complete the LE. In instances where the information is unknown, you must use estimates. For categories that are subject to tolerance, those tolerances still apply. However, even for categories that are not subject to tolerance, unreasonable estimates are no longer tolerated under the new rules. For example, intentionally under-disclosing a reasonable estimate for taxes or insurance to give the borrower the appearance of a lower payment is not allowed. Likewise, if the property is in a location that is likely to require flood insurance, this should also be disclosed on the initial disclosure.
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A. No, the CFPB did not provide a model form. However, Platinum will post an updated version of our “Change in Circumstances” form on our website.
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A. You will need to contact your software vendor and make sure they are on point to release the changes prior to October 3, 2015. You will need to make sure you have or will have received the updated version from your vendor. It is suggested that you test your software to understand how it will function. THIS IS CRITICAL TO ENSURING YOUR COMPANY AND STAFF ARE READY FOR THE TRID GO-LIVE DATE ON OCTOBER 3.
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A. While the APR disclosed on the initial LE by the loan originator (including the broker in a wholesale transaction) is not the binding APR for the loan, it is important that steps are taken to ensure your LOS is properly setup to disclose the APR accurately for all loans. Note that properly marking fees as Prepaid Finance Charges (PFC’s are fees that are included in the APR calculation if paid by the borrower) in your LOS is critical. Additionally, you must ensure that the proper amount of any MI premium (either up front
or monthly) is disclosed and calculated in your LOS in the APR calculation, including the accurate MI termination date if applicable. An LE with an inaccurately disclosed APR will not automatically be rejected by Platinum, but Platinum does reserve the right to reject any LE that has a grossly inaccurate APR disclosed.
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A. Creditors must ensure that the borrower receives the CD at least 3 business days prior to consummation. Note that if the CD is mailed to the borrower, an additional 3-day mail time waiting period (explained below) applies under the rules. This will require proper coordination between broker, lender and closing agent to mitigate closing delays. Additionally, loan originators are encouraged to allow adequate time to process, underwrite, clear conditions, coordinate docs/CD delivery and accommodate the new waiting period when scheduling a closing date. Be sure to share this information with your realtor/builder partners so that they are also aware.
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A. Yes, the clock starts at different times based on the method of delivery. If the CD is handed to the borrower, the clock starts and closing may take place on the third business day after the CD was handed to the borrower. If the CD is mailed, you must use the ‘mailbox’ rule. When the CD is placed in the mail, allow 3 business days for receipt, 3 business days for review, and consummation may take place on the 6th business day after the CD was placed in the mail. If the CD is delivered electronically through an approved Esign vendor , the ‘mailbox’ rule still applies unless there is evidence the borrower has received it earlier than the 3 business days (such as e-sign vendor audit trail). The creditor may then rely on that evidence and consider it to be received on that date.
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A. Yes, you may only charge the bona fide, reasonable fee for obtaining the credit report.
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A. No, you may not request this information. You are unable to impose a fee, other than a reasonable credit report fee, until the Intent to Proceed is provided. You may receive the credit card information for the purpose of obtaining the credit report only. A fee is “imposed by” a person if the person ‘…requires a consumer to provide any method for payment, even if the payment is not made or processed (i.e. predated check, or the request of credit card information) at that time.’
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A. A ‘business day’ is a day on which the creditor’s offices are open to the public for carrying out substantially all of its business functions. Note that this definition of days for waiting period/timing is different than that for other waiting periods.
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A. A ‘business day’ is the same as a business day under right of rescission. It includes all days except Sunday and legal public holidays. Check the TRID portal on Platinumez for a handy guide.
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A. This is now included on the Loan Estimate (LE) and is no longer a separate document. Be sure to setup your LOS system to continue to provide this disclosure for applications taken PRIOR TO October 3, 2015, and you may remove it after.
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A. The initial disclosure notice is now included on the LE form and therefore a separate document is no longer required. Be sure to setup your LOS system to continue to provide this disclosure for applications taken PRIOR TO October 3, 2015, and you may remove it after. HOWEVER, NOTE THAT IF BORROWER ELECTS TO WAIVE THEIR APPRAISAL RECEIPT WAITING PERIOD, PLATINUM WILL STILL REQUIRE THIS ELECTION IN WRITING. THEREFORE, THE APPRAISAL WAIVER ELECTION FORM IS STILL REQUIRED.
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A. Ensure your LOS system is setup to check the box that reads “to transfer servicing of your loan”.
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A. Ensure your LOS system is setup to check the appropriate response based on the loan program. For VA and FHA loans, you will mark ‘will allow’. For USDA and Conventional loans, you will mark ‘will not’.
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A. A revised LE may be issued in the event of a valid change in circumstance, which is similar to the existing GFE re-disclosure rules. A new LE may be issued for a fee in the 10% aggregate category if the total fees in the 10% aggregate category do not increase by 10%. However, the tolerances for those fees may not be reset unless the 10% is exceeded.
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A. These fees will have a zero (-0-) tolerance because the applicant is not allowed to shop for the service. You will need to insure you perform your due diligence on the cost of these items when you disclose.
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A. Platinum will announce which disclosures will no longer be required prior to the implementation of the LE and CD.
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A. TRID rule: See 1026.19(e)(3) Yes. There are some changes to the tolerances. Platinum has a chart on its TRID portal located on our Platinumez website. Please take time to review the categories.
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A. Yes, if a loan needs to change from a Lender Paid to a Borrower Paid transaction, this would be considered a valid, borrower requested Change in Circumstances.
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A. No, Platinum will not be changing to the use of a portal system. Our partners will continue to use the LOS software they are familiar with in order to keep the process EZ…
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A. Yes, Platinum will require a service provider list for each loan. The list should include at least one provider for every service required for which the borrower can shop.
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A. Platinum has developed a resource to aid in the disclosing of Owner’s Title insurance. This information may be found on our TRID portal at:
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