Disclaimer This information presented in this presentation is for general information only, and is based on guidelines and practices generally accepted within the mortgage finance industry and is not intended to be all-inclusive.  Endeavor America makes no representations or warranties of any kind with respect to the accuracy, completeness or suitability for any purpose of the information contained in the presentation.  Endeavor America expressly disclaims any and all warranties, express or implied, including without limitation warranties of merchantability and fitness for a particular purpose regarding these materials and this presentation.  In no event, will Endeavor America be liable for any direct, indirect, incidental, punitive or consequential damages of any kind with respect to the presentation or materials provided.  All examples are hypothetical and for illustrative purposes only.  This presentation is not intended and should not be interpreted or relied upon as legal advice.  We encourage you to seek advice from a qualified professional.

Copyright Endeavor America 2015

TILA-RESPA Integrated Disclosure – TRIDOverview & Readiness

In this presentation, we will cover the following• Loan Estimate (LE) • Intent to Proceed • Tolerances• Change of Circumstance• Closing Disclosure (CD)

TILA-RESPA Integrated Disclosure – TRIDThe Loan Estimate (LE)

EA Partner AdvantageYOU control the Loan Estimate!

TILA-RESPA Integrated Disclosure – TRIDThe Loan Estimate (LE)

The LE…• Replaces the GFE and initial TIL • TRID is effective with applications taken on or after October 3rd

TILA-RESPA Integrated Disclosure – TRIDDelivery and Timing

• The LE must be provided to the borrower in person or placed in the mail (either USPS or via email) within 3 business days of receipt of application• EA defines a “business day” as Monday through Friday,

excluding Saturdays, Sundays, and federal holidays• You should contact your settlement agent as soon as possible

after having an application, to gather an estimate of fees to properly disclose the LE. You may have to take a new application if the LE is improperly disclosed

TILA-RESPA Integrated Disclosure – TRIDApplication Definition

• Application is defined as: • Borrower name• SSN• Income (supporting documentation is not required)• Property address • Estimate of property value (an appraisal is not required)• Loan amount

TILA-RESPA Integrated Disclosure – TRIDWhen and What Fees Can I Charge the Borrower?

• Credit report (this is the only bona fide fee that can be charged to the borrower prior to the intent to proceed)• The borrower cannot be charged for any fees until the borrower has

indicated an intent to proceed with the transaction The loan originator may not order and pay for an appraisal and later collect payment from the borrower at the time of closing. This is considered imposing a fee on the borrower prior to them indicating an intent to proceed

• You cannot collect any information that may be used to collect a payment from the borrower prior to the borrower’s intent to proceed being received• No post-dated checks, no credit card numbers on file

TILA-RESPA Integrated Disclosure – TRIDIntent to Proceed

• The borrower has 10 business days from receipt of the LE to indicate their intent to proceed. The borrower(s) can indicate intent by phone, e-mail, or in writing: Written proof of the borrower’s intent to proceed can be demonstrated with either a processor

certification/attestation or written proof provided by the borrower to the loan originator

TILA-RESPA Integrated Disclosure – TRIDHow to Count the 10 Day Intent to Proceed Requirement

The 10 business days will be counted as such:• If the LE is provided to the borrower in person, the 10 days

begin that day• If LE was delivered priority overnight and the borrower

signs receipt of delivery, the 10 days begin that day• If the LE is delivered via email and the borrower

acknowledges via e-signature, the 10 days begin that day• If the LE is delivered via email or USPS mail and the

borrower does not provide confirmation of receipt as listed above, the 10 days begin after 3 days have passed

TILA-RESPA Integrated Disclosure – TRIDLE Page One

• General information• Date, address, rate lock, etc.

• Loan terms table• Loan amount, interest rate, monthly

P&I

• Projected payments table• P&I, MI, estimated monthly payment

• Costs at Closing table

TILA-RESPA Integrated Disclosure – TRIDLE Page Two

• Loan costs & other costs• An estimated itemization

• Calculating cash to close• Shows how amount was calculated

TILA-RESPA Integrated Disclosure – TRIDLE Page Three

• Contact information• Comparisons table

• Shows how amount was calculated

• Total Interest Payment (TIP)• Replaces the Total

Payments from the initial TIL

• Other considerations• Signature statement

• Acknowledging receipt does not equal intent to proceed

TILA-RESPA Integrated Disclosure – TRIDFees Disclosed on the LE

• Fees must be rounded to the nearest whole dollar amount (e.g. a $13.75 charge will be rounded to $14.00)

• Fees must be listed alphabetically and conform to industry standard naming conventions. • Calyx Point and Encompass will automatically do this

TILA-RESPA Integrated Disclosure – TRIDTolerances

Zero ToleranceNot permitted to charge borrower more than what is listed on the LE unless there is a valid change of circumstance Includes: • Fees paid to the lender, mortgage broker, or an affiliate of

either• Fees paid to an unaffiliated third-party if the lender/broker

did not permit the borrower to shop for a third-party service provider for a settlement service or

• Transfer taxes

TILA-RESPA Integrated Disclosure – TRIDChange in Circumstance

Valid change in circumstance • Loan Program Change• APR increase by more than .125• Rate Lock

In the event of a valid Change of Circumstance, the LE must be re-disclosed within 3 business days and an additional 3 day waiting period occurs (excluding Sundays and legal federal holidays)

EA defines a “business day” as Monday through Friday, excluding Saturdays, Sundays, and federal holidays

TILA-RESPA Integrated Disclosure – TRIDTolerances

10% Cumulative Tolerance• Recording fees• Charges for third-party services where:

Not paid to the lender/broker or affiliate of the lender/broker and borrower was permitted by the lender/broker to shop, and the borrower selected a

third-party provider on the list provided by the lender/broker

TILA-RESPA Integrated Disclosure – TRIDTolerances

Variances permitted without toleranceIncludes: • Prepaid interest, property insurance premiums, amounts

placed into escrow• Services required by lender/broker that the borrower shops

for and selects a third-party provider not on the written list of service providers

• Charges paid to a third-party service provider not required by the lender/broker

TILA-RESPA Integrated Disclosure – TRIDThe Closing Disclosure (CD)

The CD…• Replaces and combines the final TIL and HUD-1 Settlement Statement

• CD is effective for all loans with applications taken on or after October 3rd

• EA will prepare and deliver the CD• CDs will be prepared and delivered within

24 hours of the loan going “pink” in EASY

TILA-RESPA Integrated Disclosure – TRIDDelivery and Timing• MUST be delivered 3 business days prior to consummation (signing loan documents)

• Business Day for CD purposes = All calendar days except Sundays and federal legal holidays. It is counted the same way we count the rescission period• Contrary to some rumors, there is no “cooling off” period

added; TRID requires the lender to disclose earlier in the closing process

TILA-RESPA Integrated Disclosure – TRIDCD Page One

• General information• Date, address, etc.

• Loan terms table• Loan amount, interest

rate, monthly P&I, prepayment penalty, balloon payment

• Projected payments table• P&I, MI, estimated

monthly payment• Costs at Closing table

TILA-RESPA Integrated Disclosure – TRIDCD Page Two

• Closing Cost Details• Loan Costs• Other Costs

TILA-RESPA Integrated Disclosure – TRIDCD Page Three

• Calculating cash to close

• Summaries of Transaction tables

TILA-RESPA Integrated Disclosure – TRIDCD Page Four

• Additional information about this loan:

• Loan features• Loan disclosures• Assumption information

TILA-RESPA Integrated Disclosure – TRIDCD Page Five

• Loan calculations• Other disclosures• Questions and

complaint information• Contact information• Confirmation of receipt

TILA-RESPA Integrated Disclosure – TRID

Endeavor America empowers YOU, the broker, to generate the Loan Estimate

Unlike other lenders that will control you and your process, EA is your partner!

Remember…• Since you are not sure who the lender might be on your transaction,

leave the Lender Name and Loan ID blank on your LE• Contact your settlement agent and all third-parties to get a detailed list

of their fees as soon as you have an application• Read the purchase contract, if applicable, for any inspections or other

third-party fees to disclose on the LE• Input your origination fee on the LE• Do not collect any fees, except for credit report fee, prior to the intent

to proceed receipt date • EA will handle COCs and the CD for you• The CD is sent as early as possible to ensure you meet your COE• EA extends your lock at no-cost once a loan is clear to close• On your Service Provider list, for each item that a borrower may shop

for make sure you list at least one provider

TILA-RESPA Integrated Disclosure – TRID

QUESTIONS?TRID@EALOANS.com

THANK YOU!