Closing Disclosure Procedures. Provided by Primary Capital Mortgage Presented by Stacie Weider, Training Manger Class updated on 11/30/2015

Transcription

1 Closing Disclosure Procedures Provided by Primary Capital Mortgage Presented by Stacie Weider, Training Manger Class updated on 11/30/2015

2 Go to to download the class presentation Don t forget to download this presentation!

3 Review Closing Disclosure time frames Explain Primary Capital s Closing Disclosure procedures Demonstrate a loan timeline example

4 Closing Disclosure Dates

5 Closing Disclosure The Closing Disclosure must be received by the borrower at least three business days before loan consummation. For a purchase transaction, the seller must receive the Closing Disclosure no later than the day of loan consummation.

6 Business Day For the purposes of delivering the Closing Disclosure, a business day is all calendar days except Sundays and federal, legal public holidays. Saturday does count as a business day for the CD!

7 Earliest Close Date Overnight Delivery WED PCM sends CD to borrower via overnight delivery THUR Proof of borrower receiving and signing the CD Day 1 FRI Day 2 SAT Day 3 SUN Does not count as a business day MON Earliest closing date

8 Earliest Close Date E-Sign Delivery TUE Consumer opens and e-signs CD they received via from PCM Day 1 WED Day 2 THUR Day 3 FRI Earliest closing date

9 Primary Capital CD Procedures

10 Critical items needed prior to CD delivery Rate lock Appraisal Settlement agent information (fees, CPL, E&O, wire instructions) Prelim Closing Disclosure from settlement agent (include seller info for purchase) Title commitment with tax certificate Homeowners insurance quote (purchase) or binder (refinance) Purchase contract including all addendums Mortgage payoff (refinance) MI quote (BPMI only) Broker/Correspondent Doc Order Form with invoices formerly Fee Sheets ***LOAN IS SUBJECT TO FINAL APPROVAL*** Important! The CD will be sent once all loan conditions are cleared for TRID loans registered in PCM Express on or before 11/8/15

11 Where to locate the Doc Order Forms (previously called Fee Sheets):

12 Broker Doc Order Form (TRID)

13 Correspondent Doc Order Form (TRID)

14 Why are these items so critical to the CD? Rate lock Appraisal Settlement agent information (fees, CPL, E&O, wire instructions) Prelim Closing Disclosure from settlement agent (include seller info for purchase) Title commitment with tax certificate Homeowners insurance quote (purchase) or binder (refinance) Purchase contract including all addendums Mortgage payoff (refinance) MI quote (BPMI only) Broker/Correspondent Doc Order Form with invoices formerly Fee Sheets ***LOAN IS SUBJECT TO FINAL APPROVAL***

15 We want to avoid... borrower CD shock! I HAVE TO BRING THAT MUCH $$$ TO CLOSING?!

16 Electronic Delivery of CD A preliminary CD will be ed to the settlement agent and Broker/Corr for review The CD will be sent electronically to the borrower MUST HAVE VALID ADDRESS FOR ALL BORROWERS (including non-borrowing spouses) CD must be opened and e-signed within 72 hours of receipt or it will be mailed to the borrower CD is sent from: disclosures@primarycapital.com

17 E-Sign for non-borrowing spouse Please be sure to provide the following information to PCM: Valid Social Sec# Birth Date Home Address Home Phone#

18 PURCHASE PCM must have the CD request by 3:00pm (your local time) the day before the CD is to be sent

19 Refinance PCM must have the CD request by 12:00pm (your local time) the day before the CD is to be sent

20 Will a change to the Closing Disclosure delay closing?

21 Events that would trigger a new 3-day waiting period: APR Increase 1/8 - Fixed 1/4 - ARM Product Change Adding Prepayment Penalty Added Prepayment Penalty Interest rate Discount points Origination/Broker fees Mortgage insurance premiums Loan amount ARM to Fixed Conv to FHA Adding MI Not available

22 Common last minute changes that will NOT require a new 3-day waiting period: Adding borrower paid HOA dues or fees Change or addition of real estate commissions Change or addition of real estate fees to borrower Change or increase of escrows Addition of inspection fee (not required by lender) such as a Radon test Seller credits due to last minute walk-through issues Typos discovered at closing table

23 CD Status Updates All critical items received for loan file CD is sent to borrower Signed CD is received by PCM Closing package sent to settlement agent

24 CD Status All critical items received for loan file

25 Status Update Joe Borrower

26 Application to Closing Timeline Example

27 Rate lock Broker gets 6 pieces of info and completes 1003 Appraisal LE requested by Broker in PCM Express LE sent by PCM at the latest LE e-signed by borrower Broker allowed to collect fee and order appraisal because ITP is signed End of 7 day waiting period for closing Rate locked and Broker sends COC to PCM Settlement agent information (fees, CPL, E&O, wire instructions) Last day PCM can send revised LE based on COC All items required prior to CD being sent are complete Prelim Closing Disclosure from settlement agent (include seller info for purchase) Title commitment with tax certificate Homeowners insurance quote (purchase) or binder (refinance) Purchase contract including all addendums Mortgage payoff (refinance) MI quote (BPMI only) Broker/Correspondent Doc Order Form with invoices formerly Fee Sheets Thu 11/5 Fri 11/6 Sat 11/7 Sun 11/8 Mon 11/9 ***LOAN IS SUBJECT TO FINAL APPROVAL*** Tue 11/10 Wed 11/11 Thu 11/12 Fri 11/13 Sat 11/14 Sun 11/15 Mon 11/16 Tue 11/17 Wed 11/18 Thu 11/19 Fri 11/20 Sat 11/21 Sun 11/22 Mon 11/23 Tue 11/24 Wed 11/25 Thu 11/26 Fri 11/27

28 Broker gets 6 pieces of info and completes 1003 LE sent by PCM at the latest Broker allowed to collect fee and order appraisal because ITP is signed Rate locked and Broker sends COC to PCM All items required prior to CD being sent are complete Borrower opens and e-signs CD LE requested by Broker in PCM Express LE e-signed by borrower End of 7 day waiting period for closing Last day PCM can send revised LE based on COC CD is ed to borrower for e-sign Earliest day closing can occur Thanksgiving Thu 11/5 Fri 11/6 Sat 11/7 Sun 11/8 Mon 11/9 Tue 11/10 Wed 11/11 Thu 11/12 Fri 11/13 Sat 11/14 Sun 11/15 Mon 11/16 Tue 11/17 Wed 11/18 Thu 11/19 Fri 11/20 Sat 11/21 Sun 11/22 Mon 11/23 Tue 11/24 Wed 11/25 Thu 11/26 Fri 11/27

29 Thank you for your business! We appreciate you!

30 Additional information Primary Capital Mortgage, LLC, NMLS ID #3076, ( Corporate Office: 1000 Parkwood Circle, Suite 600, Atlanta, GA Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act; Colorado - Regulated by the Division of Real Estate. To check the license status of your mortgage loan originator, visit Delaware License #18413, expiration 12/31/15, licensed by the Office of The State Bank Commissioner; Georgia Residential Mortgage Licensee #14887; Illinois Residential Mortgage Licensee #MB ; IL (Illinois Residential Mortgage Licensee Other Trade Name License #MB ); Kansas Licensed Mortgage Company #MC ; Mississippi - Licensed Mortgage Company; Licensed by the New Hampshire Banking Department; Licensed by the N.J. Department of Banking and Insurance, Phone # (800) ; Ohio Mortgage Broker Act Mortgage Banker Exemption MBMB ; Oregon License #ML- 5294; Rhode Island: Licensed as Rhode Island Licensed Lender; IN TX, A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT ; Licensed in Washington as Primary Capital Mortgage, LLC, Consumer Loan Company License #CL Also authorized to conduct business in: AL, AR, CT, DC, FL, IA, ID, IN, KY, LA, MD, ME, MI, MN, MT, NC, NE, NM, OH, PA, SC, TN (License #109434), TX, UT, VA, VT, WI, WV, WY. Not all products and options are available in all states. Terms subject to change without notice Primary Capital Mortgage, LLC.