HOLY TRID! New Regulations for the Mortgage Industry Start Today!

Today marks the 1st day of new federally mandated regulations known as “TRID” (TILA-RESPA Integrated Disclosures). The Consumer Financial Protection Bureau (CFPB) has introduced these new regulations as part of their “Know Before You Owe” initiative.

New forms are part of TRID whose purpose is to help make it easier for borrowers to understand complex mortgage documentation. Home mortgages are important for consumers so that they can achieve the dream of homeownership. As much as we try to make the mortgage process less complex for our clients it is still not as simple as we all would like. These new TRID forms look to help with the complexity by merging four forms into two forms.

The New Forms

During the mortgage process, we as the mortgage lender are required to give you these two new forms. One form, the Loan Estimate, you will receive early in the process. The second form, the Closing Disclosure, you will receive later on so you can review the final loan terms before you close.

The Loan Estimate

The Loan Estimate replaces both the initial Truth-in-Lending (TIL) statement and the Good Faith Estimate (GFE).

Within 3 business days after receiving certain information on your loan application (income, property value, etc.) you will be sent a Loan Estimate.

Your Loan Estimate (LE) consists of three pages. The first page lists general information about your loan:

Applicant info and property details
Loan type, purpose and terms
Projected payments during the loan term
Estimated closing costs and how much cash you’ll need at closing

The second page of the Loan Estimate breaks down the closing costs:

Origination Charges (this covers our expenses to do the loan)
Other Costs (third-party charges like homeowners insurance)
Calculation used to determine estimated cash required at closing
Adjustable interest rate table, payment table (for ARM loans only)

The last page shows information about your lender and further details to help you choose which loan is right for you:

Contact info for us “the lender” and your loan originator
Comparisons (consistent table format to make comparing different loans easy)
Other Considerations (details specific to this loan from this lender)
When you’ve decided on your loan option, you MUST sign the Intent to Proceed document. Without this consent, we as your lender cannot move forward with processing your loan.

Closing Disclosure

The new Closing Disclosure replaces both the final Truth-in-Lending disclosure and the HUD-1 statement.

When your loan has been processed and is ready to close, you will have a final discussion with us to go over the loan and its terms. We want to make sure you understand and agree to everything. We will then provide you a Closing Disclosure detailing your loan terms.

The Closing Disclosure is designed to be easy to read and contains the same information as the Loan Estimate essentially. It will reflect your final fees, charges and includes additional information relating to your escrow account (which holds funds to pay your taxes & insurance(, if applicable. You need to review and confirm everything matches what you have agreed to.

The New 3-Day Waiting Period

We as your lender are required to give you a minimum of three business days to review the Closing Disclosure before your closing can take place. If changes to the Closing Disclosure are made, another three-day review period may be required.

To prevent a delay in the closing of your loan, it is important to acknowledge receipt of the Closing Disclosure as soon as you receive it.

Here at Mason-McDuffie Mortgage we have been working hard to make sure our clients have a seamless transaction with these new regulations. If you have any questions about the new regulations or forms, please contact your Loan Originator, or you can email us at info@mmcdcorp.com.

Realtor Safety

iStock_000000849284MediumRealtor safety when showing vacant properties has always been a concern. Recently there have been many stories published on the subject, but none more horrible than the kidnapping and death of Beverly Carter.  With safety now at the forefront, it is time for all firms to make use of available tools to help keep their agents safe.

We have listed some of those tools in this blog post.  You can also read a recent article from Inman here (http://www.inman.com/next/real-estate-agents-using-apps-wearable-tech-to-stay-safe/) which talks about some of the tools we list below.

Push to Alert – Smart Phone app for security at Open House or Private Showings. “Faster than calling 911 and triangulates location”.  If threatened Realtor can press assault icon on the smart phone which immediately dials 911 and locates home address.  Sends message in stealth mode and allows four seconds for user to cancel the alert.

Available for download in the iTunes store.

Guardly Safety App – Smart Phone app offers automatic connection with emergency services, real-time notification to designated people, real-time location tracking and an emergency beacon.

Download is free, a monthly subscription for most features is $1.99, with a one-year subscription of $19.99

Moby App – iPhone, Blackberry and Android (coming soon). Features include Tracking tool that allows you to reveal your location to select contacts.  App can be set to send your GPS location periodically to whomever you choose.  App will send messages at predetermined times that ask, “Are you OK?”.  If two questions go unanswered, the app will automatically notify the contacts you select that you failed to respond and provide your GPS location from smartphone.  Alert tool: with one touch of a button, you will be able to alert your contacts or emergency personnel if you need help.  Alert includes  your GPS location.

Available on iTunes

Real Alert – for iPhone and Android – App allows you to quickly alert your emergency contacts or police when you feel threatened as well as discreetly record “creep data”, key details about suspicious people you encounter.

Cost $1.99

Other Security Options

Secure Show – Starts by purchasing a verification, either singularly or in packs.  Whoever you wanted to verify is sent a verification link, their cellphone number is confirmed, and the prospect is walked through a process where they scan and upload their driver’s license, passport or state ID.  Secure Show verifies that the photo matches the ID, while a third-party company checks the ID against other databases.  It is not a criminal background check.

Once your identity and their identity are verified, both parties receive notifications with photos of each other and a special identifying code.

Normal Turnaround time is 30 minutes or less.

Wearable Devices:

Cuff – is a small device that fits into several cuff versions and also a necklace.  Billed as “Smart Jewelry”, cuff has features like phone notification and activity tracking. Cuff also has a built-in safety feature that, when pressed, sends out a message to designated friends and family with your location, as well as audio that the device picks up. Available for preorder and delivery in March 2015.

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