This is the 3rd installment of text taken from the Federal Register about changes to the settlement process. This section deals with requirements for the “Good Faith Estimate”. It’s a lot longer – 4 pages now.
The next post will have comments by the public about the proposed changes.
III. GFE and GFE Requirements—
Discussion of Public Comments
A. Overall Comments on the Proposed Required GFE Form
Proposed Rule. HUD proposed a four page GFE form. The first page of the GFE included a summary chart with key terms and information about the loan for which the GFE was provided, including initial loan balance; loan term; initial interest rate; initial amount owed for principal, interest, and any mortgage insurance; rate lock period; whether the interest rate can rise; whether the loan balance can rise; whether the monthly amount owed for principal, interest, and any mortgage insurance can rise; whether the loan has a prepayment penalty; whether the loan has a balloon payment; and whether the loan includes a monthly escrow payment for property taxes and possibly other obligations. The first page of the form also included information regarding the length of time the interest rate for the GFE was valid; the length of time the other settlement charges were valid; information about when settlement must occur if the borrower proceeds with the loan; and information concerning how many days the interest rate must be locked before settlement. At the bottom of the first page, the GFE included a summary of the settlement charges. The adjusted origination charges listed on the second page, along with the charges for all other settlement charges listed on the second page, would have been totaled and listed on this page.
The second page of the GFE included a listing of estimated settlement charges. The loan originator’s service charge would have been required to be listed at the top of page two, and the credit or charge (points) for the specific interest rate chosen would have been required to be subtracted or added to the service charge to arrive at the adjusted origination charge, which would have been shown on the top of page two. Page two of the GFE also would have required an estimate for all other settlement services. The GFE included categories for other settlement services including: Required services that the loan originator selected; title services and lender’s title insurance; required services that the borrower would have been able to shop for; government recording and transfer charges; reserves or escrow; daily interest charges; homeowner’s insurance; and optional owner’s title insurance. The GFE would have required these charges to be subtotaled at the bottom of page two. The sum of the adjusted origination charges and the charges for all other settlement services would have been required to be listed on the bottom of page 2.
The third page of the GFE would have required information concerning shopping for a loan offer. In addition, page three would have included information about which settlement charges could change at settlement, and by how much such charges could change. Page 3 also would have required the loan originator to include information about loans for which a borrower would have qualified that would increase or decrease settlement charges, with a corresponding change in the interest rate of the loan.
The fourth page of the GFE included a discussion of financial responsibilities of a homeowner. The loan originator would have been required to state the annual property taxes and annual homeowner’s flood, and other required property protection insurance, but would not have been required to state estimates for other charges such as annual homeowner’s association or condominium fees. The GFE included a section that advised borrowers that the type of loan chosen could affect current and future monthly payments. The proposed GFE also indicated that the borrower could ask the loan originator for more information about loan types and could look at several government publications, including HUD’s Special Information Booklet on settlement charges, Truth in Lending Act (TILA) disclosures, and consumer information publications of the Federal Reserve Board. The March 2008 proposed rule invited comments on possible additional ways to increase consumer understanding of adjustable rate mortgages.
Page 4 also would have included information about possible lender compensation after settlement. In addition, page 4 would have included a shopping chart to assist the borrower in comparing GFEs from different loan originators and information about how to apply for the loan for which the GFE had been provided.
Continuing Education for Title Agents
Free classifieds for the Title Industry
Posted via email from Title Insurance This is a multipart message in MIME format. ——=_NextPart_000_0022_01C9C910.6F6D8D00 ——=_NextPart_001_0023_01C9C910.6F6D8D00 This is the 3rd installment of text taken from the Federal Register about The next post will have comments by the public about the proposed changes. III. GFE and GFE Requirements- Discussion of Public Comments A. Overall Comments on the Proposed Required GFE Form Proposed Rule. HUD proposed a four page GFE form. The first page of the GFE The second page of the GFE included a listing of estimated settlement The third page of the GFE would have required information concerning The fourth page of the GFE included a discussion of financial Page 4 also would have included information about possible lender Continuing Education for Title Agents Free classifieds for the btn_viewmy_160x33 ——=_NextPart_001_0023_01C9C910.6F6D8D00 v:* {behavior:url(#default#VML);} This is the = The next post will have = III. GFE and GFE Discussion of Public = A. Overall Comments on = Proposed Rule. HUD proposed a = The second page of the GFE = The third page of the GFE = The fourth page of the GFE = Page 4 also would have = Continuing Education for Title Agents Free classifieds for the Title = ——=_NextPart_001_0023_01C9C910.6F6D8D00– ——=_NextPart_000_0022_01C9C910.6F6D8D00 R0lGODlhoAAhAOYAAP////j8/vf39+74/PH4+u/v7+Xx9t/v9dbv9+bm5tDs9svq9c/m8Mbo9N7e ——=_NextPart_000_0022_01C9C910.6F6D8D00– The name Countrywide Financial has been retired and Bank of America Home Loans has taken its place. Bank of America Home Loans has renamed its one-page loan summary presented to borrowers the Clarity Commitment. The bank said it will contain interest rate, terms and other details of the loan in plain language similar to the Good Faith Estimate. Provided both at application and at closing, the Clarity Commitment document, says Bank of America, is available on most new purchase and refinance transactions, including traditional and government-backed loans. In addition, the company said it has introduced the Bank of America Home Loan Guide as part of the new Bank of America home loans Web site. By explaining key data inputs, highlighting "rules of thumb" and tips with each step, and providing context around the results, the guide is supposed to give consumers relevant, personalized information that helps them understand their options and make informed decisions. Considering RESPA changes to the Good Faith Estimate and changes to the HUD-1 if this Clarity Commitment is really necessary. I know I would appreciate one less form to sign at a closing. Continuing Education for Title Agents Free classifieds for the Title Industry Posted via email from Title Insurance
Continuing Ed for Title Agents
Changes in the HUD Part 3
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changes to the settlement process. This section deals with requirements for
the “Good Faith Estimate”. It’s a lot longer – 4 pages now.
included a summary chart with key terms and information about the loan for
which the GFE was provided, including initial loan balance; loan term;
initial interest rate; initial amount owed for principal, interest, and any
mortgage insurance; rate lock period; whether the interest rate can rise;
whether the loan balance can rise; whether the monthly amount owed for
principal, interest, and any mortgage insurance can rise; whether the loan
has a prepayment penalty; whether the loan has a balloon payment; and
whether the loan includes a monthly escrow payment for property taxes and
possibly other obligations. The first page of the form also included
information regarding the length of time the interest rate for the GFE was
valid; the length of time the other settlement charges were valid;
information about when settlement must occur if the borrower proceeds with
the loan; and information concerning how many days the interest rate must be
locked before settlement. At the bottom of the first page, the GFE included
a summary of the settlement charges. The adjusted origination charges listed
on the second page, along with the charges for all other settlement charges
listed on the second page, would have been totaled and listed on this page.
charges. The loan originator’s service charge would have been required to be
listed at the top of page two, and the credit or charge (points) for the
specific interest rate chosen would have been required to be subtracted or
added to the service charge to arrive at the adjusted origination charge,
which would have been shown on the top of page two. Page two of the GFE also
would have required an estimate for all other settlement services. The GFE
included categories for other settlement services including: Required
services that the loan originator selected; title services and lender’s
title insurance; required services that the borrower would have been able to
shop for; government recording and transfer charges; reserves or escrow;
daily interest charges; homeowner’s insurance; and optional owner’s title
insurance. The GFE would have required these charges to be subtotaled at the
bottom of page two. The sum of the adjusted origination charges and the
charges for all other settlement services would have been required to be
listed on the bottom of page 2.
shopping for a loan offer. In addition, page three would have included
information about which settlement charges could change at settlement, and
by how much such charges could change. Page 3 also would have required the
loan originator to include information about loans for which a borrower
would have qualified that would increase or decrease settlement charges,
with a corresponding change in the interest rate of the loan.
responsibilities of a homeowner. The loan originator would have been
required to state the annual property taxes and annual homeowner’s flood,
and other required property protection insurance, but would not have been
required to state estimates for other charges such as annual homeowner’s
association or condominium fees. The GFE included a section that advised
borrowers that the type of loan chosen could affect current and future
monthly payments. The proposed GFE also indicated that the borrower could
ask the loan originator for more information about loan types and could look
at several government publications, including HUD’s Special Information
Booklet on settlement charges, Truth in Lending Act (TILA) disclosures, and
consumer information publications of the Federal Reserve Board. The March
2008 proposed rule invited comments on possible additional ways to increase
consumer understanding of adjustable rate mortgages.
compensation after settlement. In addition, page 4 would have included a
shopping chart to assist the borrower in comparing GFEs from different loan
originators and information about how to apply for the loan for which the
GFE had been provided.
Title Industry
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3rd
installment of text taken from the Federal Register about changes to the
settlement process. This section deals with requirements for the =
“Good
Faith Estimate”. It’s a lot longer – 4 =
pages
now.
comments
by the public about the proposed changes.
Requirements—
Comments
the
Proposed Required GFE Form
four
page GFE form. The first page of the GFE included a summary chart with =
key
terms and information about the loan for which the GFE was provided, =
including
initial loan balance; loan term; initial interest rate; initial amount =
owed for
principal, interest, and any mortgage insurance; rate lock period; =
whether the
interest rate can rise; whether the loan balance can rise; whether the =
monthly
amount owed for principal, interest, and any mortgage insurance can =
rise;
whether the loan has a prepayment penalty; whether the loan has a =
balloon
payment; and whether the loan includes a monthly escrow payment for =
property
taxes and possibly other obligations. The first page of the form also =
included
information regarding the length of time the interest rate for the GFE =
was
valid; the length of time the other settlement charges were valid; =
information
about when settlement must occur if the borrower proceeds with the loan; =
and
information concerning how many days the interest rate must be locked =
before
settlement. At the bottom of the first page, the GFE included a summary =
of the
settlement charges. The adjusted origination charges listed on the =
second page,
along with the charges for all other settlement charges listed on the =
second
page, would have been totaled and listed on this page. =
included a
listing of estimated settlement charges. The loan originator’s =
service
charge would have been required to be listed at the top of page two, and =
the
credit or charge (points) for the specific interest rate chosen would =
have been
required to be subtracted or added to the service charge to arrive at =
the
adjusted origination charge, which would have been shown on the top of =
page
two. Page two of the GFE also would have required an estimate for all =
other
settlement services. The GFE included categories for other settlement =
services
including: Required services that the loan originator selected; title =
services
and lender’s title insurance; required services that the borrower =
would
have been able to shop for; government recording and transfer charges; =
reserves
or escrow; daily interest charges; homeowner’s insurance; and =
optional
owner’s title insurance. The GFE would have required these charges =
to be
subtotaled at the bottom of page two. The sum of the adjusted =
origination
charges and the charges for all other settlement services would have =
been
required to be listed on the bottom of page 2.
would have
required information concerning shopping for a loan offer. In addition, =
page
three would have included information about which settlement charges =
could
change at settlement, and by how much such charges could change. Page 3 =
also
would have required the loan originator to include information about =
loans for
which a borrower would have qualified that would increase or decrease
settlement charges, with a corresponding change in the interest rate of =
the
loan.
included a
discussion of financial responsibilities of a homeowner. The loan =
originator
would have been required to state the annual property taxes and annual
homeowner’s flood, and other required property protection =
insurance, but
would not have been required to state estimates for other charges such =
as
annual homeowner’s association or condominium fees. The GFE =
included a
section that advised borrowers that the type of loan chosen could affect
current and future monthly payments. The proposed GFE also indicated =
that the
borrower could ask the loan originator for more information about loan =
types
and could look at several government publications, including HUD’s
Special Information Booklet on settlement charges, Truth in Lending Act =
(TILA)
disclosures, and consumer information publications of the Federal =
Reserve
Board. The March 2008 proposed rule invited comments on possible =
additional
ways to increase consumer understanding of adjustable rate mortgages. =
included
information about possible lender compensation after settlement. In =
addition,
page 4 would have included a shopping chart to assist the borrower in =
comparing
GFEs from different loan originators and information about how to apply =
for the
loan for which the GFE had been provided.
Industry
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UAABASBFIAAAOw==Another form to sign at closing
Continuing Ed for Title Agents
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