Things to Know from the Compliance Team
- Reminder: Once a loan has been triggers as a TRID application, it CANNOT be “Un-triggered”. Loan will have to be closed out and restarted.
- VA IRRRL and streamlines – ALL fees must be marked as financed on your itemization or you will have a Mavent fail.
- Texas loans – Require specific boxes be checked in the “state Specific Information” screen based on the loan scenario. This dictates what closing docs print and if incorrect will also result in Mavent fails. See below for reference:
- If rate/term refi, and never a cash out previously:
Homestead box checked, continuous purchase money
- If rate/term, but previously a cashout:
Homestead and Texas 50(a)(4)
- If cashout:
- Dual Capacity – The following states require a Dual Capacity” disclosure if applies: AZ,CO,CT,DC,FL,KS,MS,NE,NV,TX,VA and WA. The disclosure will print when required information is entered in the “State Specific Information” screen (each state varies). We have set an ALERT which reads: “Dual Capacity Disclosure may be required”. If you see this alert you need to determine if LO is acting as the originator and real estate agent, if so, disclosure needs to be sent to the borrower(s). This is a state requirement, failure to comply could result in a fine or possible loss of license.
- SSPL – if you change lines providers are listed on templated SSPL directly on the SSPL form in Encompass, it can result in an incomplete SSPL sent with your Loan Estimate causing tolerance cures. Note: Closing should be checking this
- If a survey fee is being charged in the 1300 section of your LE/CD as borrower shopped, but you did not list a provider on your SSPL, this fee is then considered not shoppable and needs to be moved to the 800 section and will result in a 0% tolerance cure.
- Real Estate Commission should be reflected in the 700 section of your itemization (not 1300 section)
- NON-TRID application packages (TBD) do not print the following disclosures:
- Loan Estimate
- Intent to Proceed
- Tax Payer Notice
- Appraisal – Waiver of Three Days Delivery (Optional disclosure)
- PMI disclosures
- Various government or state specific disclosures
- If redisclosing on a LE or redisclosing on the ICD, it must be redisclosed within 3 days of event. Until an ICD has been issued, Saturday does not count as a business day per Reg Z (TRID). Once a CD had been issued, then per Reg Z (TRID) includes Saturdays as a business day.
- Find attached a Redisclosure flyer which includes a brief definition of TRID and the RD process as well as a Redisclosure matrix with common reason to redisclose or not.
- As a Loan Estimate is not sent with on NON-TRID application package (TBD), changes do not require the redisclosure of an LE as one was never sent. To provide the borrower(s) with an estimate of fees, a LE is not allowed, you can send a fee worksheet by clicking on the print icon, under general forms, a form called “Itemization fee worksheet”.
- There is no COC for correction to name or address nor does an LE need to be redisclosed. Add an LOX to file for correction. For last name change or suffix, underwriting will require new credit report. For a completely new address, a new file will need to be started.
Loan Status Corner
- Find attached Loan Status Flyer which gives a brief description of Loan Status process and specific reports or queues and their functionality.
- TRID application not disclosed within 3 days will be closed out on day 6, this allows you time to restart your file and pull anything out of old file. Once loan is closed out, you will not have access.
- When restarting a file, please let Loan Status know to close original out as a duplicate unless loan being denied. If not closed out as duplicate, loan will be reported twice.
- HMDA Data – Missing information on TRID applications that are HMDA reportable: Date of Birth and complete current address. Please be mindful as this is required information.
Post Consummation Corner
- For corrections needed to the CD after close, please add notes in the “Closing Command Center”
- How to disclose proceeds from DPA on 1st Investor requires page 3 of CD to read: “DPA (total loan amount) Proceeds…(total loan amount less fees)” Example: WA Bond DPA (14,000) Proceeds…..13,700 (borrower column)
- Missing Realtor Contact information including license numbers in file contacts. Need to make sure all information is entered.
- Adjustments and other credits on page 3 of CD. Please make sure when this is “YES”, it reflects the “See details in section….”. Not carrying over on final CD which then requires a Post CD.
- Borrower Name listed in agency site (FHAC, WebLGY, USDA) must match closing docs. If there is a discrepancy, need to get with underwriting to either correct in encompass or on government site.
- VA IRRRL – currently, per VA, you cannot do a VA IRRRL unless paying off a lien. Please reach out to underwriting is you have this scenario.
- USDA purchase transactions – unlike FHA, USDA does not take into account tax prorations, max cash back cannot exceed amount borrower put into transaction. (e.g. – borrower only paid appraisal fee of 500.00, no EMD, max cash back is 500.00)
- VA COE requests – If when requesting a COE and WebLGY reflects status as pending and they need additional information, COE may be issued however, loan cannot be insured until cleared. Need to make sure status is cleared. (Note: In some cases, appears they send email to borrower)
How I feel some days…. (See Attachment)
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