Download there is no exception to this rule

TILA-RESPA INTEGRATED
DISCLOSURE (TRID) RULE
Effective August 1, 2015
Part 1: Understanding
Integrated Disclosures
←
→
WELCOME TO TRID
2
 This is an introductory presentation which will cover the basic
information about the new rules including a:
• Practical description of the new rules and
• An overview of the changes
 There will be subsequent presentations over the next several
months which will provide:
←
• Specific details on each new form
• Suggestions on how to prepare for the change
HomeBridge is providing information on TRID rules and HomeBridge requirements. Sellers are responsible to ensure all loans submitted for purchase to HomeBridge
are in compliance with TRID and HomeBridge guidelines. Additionally, Sellers are responsible to ensure all applicable disclosures required under TRID are provided.
Sellers should consult with their own legal counsel to guarantee compliance.
HOMEBRIDGE FUNDING | Partners for the Path Ahead
A Division of HomeBridge Financial Services, Inc.
←
→
OVERVIEW


Truth-in-Lending Act (TILA)/RESPA Integrated Disclosures, or TRID as it is commonly being
referred to, is the most significant regulatory event that has occurred in the residential
mortgage industry in over 30 years.
3
For more than 30 years, lenders have been required to provide disclosures under (2)
different Federal regulations: The Truth-in-Lending Act (TILA) and the Real Estate Settlement
Procedures Act (RESPA). The forms provided were commonly referred to as:
• The Good Faith Estimate (GFE)
• The Reg Z / Truth-in-Lending Disclosure (TIL) – issued both at application and at settlement
• The HUD-1 Settlement Statement
←

These forms had overlapping information and in some instances the language was
inconsistent.

As part of the Dodd-Frank Wall Street Reform Act, enacted by Congress, the Consumer
Financial Protection Bureau (CFPB) was established. Dodd-Frank directed the CFPB to
consolidate and simplify these forms to be more consumer friendly, transparent and eliminate
inconsistency.

The result of those efforts are TRID.
HomeBridge is providing information on TRID rules and HomeBridge requirements. Sellers are responsible to ensure all loans submitted for purchase to HomeBridge
are in compliance with TRID and HomeBridge guidelines. Additionally, Sellers are responsible to ensure all applicable disclosures required under TRID are provided.
Sellers should consult with their own legal counsel to guarantee compliance.
HOMEBRIDGE FUNDING | Partners for the Path Ahead
A Division of HomeBridge Financial Services, Inc.
←
→
THE FORMS
 There are two new disclosures which form the basis of TRID:
The Loan Estimate (LE) – Replaces the GFE and Initial TIL
The Closing Disclosure (CD) – Replaces the HUD-1 and the
Final TIL
4
 Although these 2 forms are the foundation of the change, it
would be a mistake to assume that TRID is just 2 new forms
that replaced 3 old forms.
←
HomeBridge is providing information on TRID rules and HomeBridge requirements. Sellers are responsible to ensure all loans submitted for purchase to HomeBridge
are in compliance with TRID and HomeBridge guidelines. Additionally, Sellers are responsible to ensure all applicable disclosures required under TRID are provided.
Sellers should consult with their own legal counsel to guarantee compliance.
HOMEBRIDGE FUNDING | Partners for the Path Ahead
A Division of HomeBridge Financial Services, Inc.
←
→
HOW DOES THIS IMPACT YOU
 The requirements surrounding TRID are ultimately the responsibility
of the lender.
 Knowledge is Power. It is important to understand how this regulation
impacts the entire residential lending process, which ultimately
affects you and your business.
←
HomeBridge is providing information on TRID rules and HomeBridge requirements. Sellers are responsible to ensure all loans submitted for purchase to HomeBridge
are in compliance with TRID and HomeBridge guidelines. Additionally, Sellers are responsible to ensure all applicable disclosures required under TRID are provided.
Sellers should consult with their own legal counsel to guarantee compliance.
HOMEBRIDGE FUNDING | Partners for the Path Ahead
A Division of HomeBridge Financial Services, Inc.
←
→
5
EFFECTIVE DATE
 The regulation is effective for all applications received on
and after August 1, 2015.
• Applications received on or before July 31, 2015 are NOT
subject to the new regulations and will continue to be
subject to existing criteria and will use existing
disclosures.
6
←
HomeBridge is providing information on TRID rules and HomeBridge requirements. Sellers are responsible to ensure all loans submitted for purchase to HomeBridge
are in compliance with TRID and HomeBridge guidelines. Additionally, Sellers are responsible to ensure all applicable disclosures required under TRID are provided.
Sellers should consult with their own legal counsel to guarantee compliance.
HOMEBRIDGE FUNDING | Partners for the Path Ahead
A Division of HomeBridge Financial Services, Inc.
←
→
THE APPLICATION

The definition of an application has also changed with the implementation of TRID. There is now a
consistent and universal definition of what constitutes an application. When a lender has received
the following 6 pieces of information, it will be deemed an application:
1. Borrower Name
2. Borrower Income
3. Borrower Social Security Number
4. The subject property address
5. Estimated property value
6. Loan amount sought
←

Existing criteria permits lenders to develop their own unique 7th item in order to deem an
application complete. This 7th catch-all item option is eliminated for applications subject to TRID.

The only loans NOT covered by TRID are:
• Reverse Mortgages, HELOCs and mobile homes or dwellings that are not attached to real
property / land
HomeBridge is providing information on TRID rules and HomeBridge requirements. Sellers are responsible to ensure all loans submitted for purchase to HomeBridge
are in compliance with TRID and HomeBridge guidelines. Additionally, Sellers are responsible to ensure all applicable disclosures required under TRID are provided.
Sellers should consult with their own legal counsel to guarantee compliance.
HOMEBRIDGE FUNDING | Partners for the Path Ahead
A Division of HomeBridge Financial Services, Inc.
←
→
7
TIMING
 The Loan Estimate (LE) must be delivered to the borrower within 3
business days of the application
• It is anticipated with the elimination of the 7th item, loans will need
to be disclosed earlier in the process.
 The regulation provides a lender with the ability to issue a closing cost
worksheet in advance of an application being taken.
• There are specific provisions in the regulation regarding the format of
the worksheet so that it is not misconstrued as an LE.
8
←
 No fees may be imposed on a borrower in connection with the application
before the borrower has received the LE and has indicated to the creditor
their intent to proceed with the transaction. In addition, no payment
information may be requested or held until intent to proceed is provided.
HomeBridge is providing information on TRID rules and HomeBridge requirements. Sellers are responsible to ensure all loans submitted for purchase to HomeBridge
are in compliance with TRID and HomeBridge guidelines. Additionally, Sellers are responsible to ensure all applicable disclosures required under TRID are provided.
Sellers should consult with their own legal counsel to guarantee compliance.
HOMEBRIDGE FUNDING | Partners for the Path Ahead
A Division of HomeBridge Financial Services, Inc.
←
→
APPLICATION DOCUMENTATION
 A lender cannot require a borrower to provide ANY
documentation to verify the information on their
application in order to issue the LE. Once the 6 items are
received, a lender has a complete application and the LE
must be issued within 3 business days.
9
←
 The ability for a lender to provide any type of meaningful
Pre-Approval or Pre-Qualification letter may be impacted by
this restriction.
HomeBridge is providing information on TRID rules and HomeBridge requirements. Sellers are responsible to ensure all loans submitted for purchase to HomeBridge
are in compliance with TRID and HomeBridge guidelines. Additionally, Sellers are responsible to ensure all applicable disclosures required under TRID are provided.
Sellers should consult with their own legal counsel to guarantee compliance.
HOMEBRIDGE FUNDING | Partners for the Path Ahead
A Division of HomeBridge Financial Services, Inc.
←
→
WHAT HAS NOT CHANGED?
The borrower must still:
 Sign an Intent to Proceed;
 Be given the Settlement Cost Booklet and the Adjustable
Rate Mortgage Booklet;
 Be given all appraisal and valuation models used in the
lending decision; and
←
10
 There must still be a legitimate change of circumstance in
order to change certain fees.
HomeBridge is providing information on TRID rules and HomeBridge requirements. Sellers are responsible to ensure all loans submitted for purchase to HomeBridge
are in compliance with TRID and HomeBridge guidelines. Additionally, Sellers are responsible to ensure all applicable disclosures required under TRID are provided.
Sellers should consult with their own legal counsel to guarantee compliance.
HOMEBRIDGE FUNDING | Partners for the Path Ahead
A Division of HomeBridge Financial Services, Inc.
←
→
THE CLOSING PROCESS
 The lender must provide the Closing Disclosure (CD) to the borrower 3 business days prior
to closing / settlement. THERE IS NO EXCEPTION TO THIS RULE.
 Previously the HUD-1 Settlement Statement was customarily prepared by the closing
agent. The new regulation now gives lenders the option to issue the Closing Disclosure,
including any revisions that are needed.
• Many lenders are considering this option due to magnitude of the change and the lender’s
responsibility for accuracy and timing.
• Since the borrower must receive the CD prior to settlement, lenders will need to accommodate
both borrower and settlement agent questions. In addition lenders must also accommodate
11
corrections that must be made at the time of settlement.
←
 In order to meet these deadlines, at a minimum the lender, the Realtor, the Builder, the
Settlement Agent and the Borrower’s Insurance Agent must all proactively work together
to obtain all information needed, much sooner than today’s process.
HomeBridge is providing information on TRID rules and HomeBridge requirements. Sellers are responsible to ensure all loans submitted for purchase to HomeBridge
are in compliance with TRID and HomeBridge guidelines. Additionally, Sellers are responsible to ensure all applicable disclosures required under TRID are provided.
Sellers should consult with their own legal counsel to guarantee compliance.
HOMEBRIDGE FUNDING | Partners for the Path Ahead
A Division of HomeBridge Financial Services, Inc.
←
→
NEXT PRESENTATION IN APRIL
 The next TRID presentation will focus specifically on the
Loan Estimate
• A review of the form
• New information that is required to be presented to the
borrower, such as the TIP (Total Interest Percentage)
• What has changed – no more HUD-1 Line Numbers
• No more blanks
←
12
HomeBridge is providing information on TRID rules and HomeBridge requirements. Sellers are responsible to ensure all loans submitted for purchase to HomeBridge
are in compliance with TRID and HomeBridge guidelines. Additionally, Sellers are responsible to ensure all applicable disclosures required under TRID are provided.
Sellers should consult with their own legal counsel to guarantee compliance.
HOMEBRIDGE FUNDING | Partners for the Path Ahead
A Division of HomeBridge Financial Services, Inc.
←
→
THANK YOU
The more you know the more you’re informed.
 CFPB TRID Implementation
http://consumerfinance.gov/regulatory-implementation/tila-respa/
 CFPB Webinars
←
https://consumercomplianceoutlook.org/outlook-live/
13
HomeBridge is providing information on TRID rules and HomeBridge requirements. Sellers are responsible to ensure all loans submitted for purchase to HomeBridge
are in compliance with TRID and HomeBridge guidelines. Additionally, Sellers are responsible to ensure all applicable disclosures required under TRID are provided.
Sellers should consult with their own legal counsel to guarantee compliance.
HOMEBRIDGE FUNDING | Partners for the Path Ahead
A Division of HomeBridge Financial Services, Inc.
←
→
←
MAKE THE CONNECTION:
HOMEBRIDGEFUNDING.COM
TOLL FREE: 855.242.3863
HomeBridge is providing information on TRID rules and HomeBridge requirements. Sellers are responsible to ensure all loans submitted for purchase to HomeBridge
are in compliance with TRID and HomeBridge guidelines. Additionally, Sellers are responsible to ensure all applicable disclosures required under TRID are provided.
Sellers should consult with their own legal counsel to guarantee compliance.
HOMEBRIDGE FUNDING | Partners for the Path Ahead
A Division of HomeBridge Financial Services, Inc.
←