TRID FAQs: You Asked. We Answered!

Transcription

1 TRID FAQs: You Asked. We Answered! 1. Category Question Answer 2. Common Terms and LDW LDWholesale Definitions 3. Common Terms and Loan Estimate (LE) Replaces the GFE and TIL Definitions 4. Common Terms and Closing Disclosure (CD) Replaces the HUD-1 Definitions 5. Common Terms and Service Provider List (SPL) Now includes vendor address/contact information Definitions 6. Common Terms and Definitions General Business Day A day on which the Broker (for initial LE) or LDW (for re-disclosed LE s) offices are open to the public for carrying out substantially all of its business functions. For TRID, this definition applies to the timeline for providing an LE after receiving an application or providing a revised LE 7. Common Terms and Definitions 8. Common Terms and Definitions 9. Common Terms and Definitions Specific Business Day Earliest Consummation Date Application Date (for TRID purposes) after receiving information to establish a valid reason for re-disclosure. All calendar days except Sundays and legal public holidays. For TRID, this definition applies to the seven (7) specific business day waiting period before consummation after issuance of the initial LE and the three (3) specific business day CD waiting period before consummation. The latter of seven (7) specific business days after the LE is delivered or placed in the mail and three (3) specific business days after the CD is received. Verbal or written receipt of the six (6) pieces of information that constitutes an application; Property Address, Property Value, Name, SS#, Income, Loan Amount. 11/17/15 1

2 10. General Questions Does TRID apply to loan applications or submissions taken on or after Oct. 3rd? 11. General Questions Which forms are required for disclosures now? For example, the GFE is no longer needed, but the CA MLDS is still required. Do you have a list of what needs to be disclosed? 12. General Questions Now that we are doing away with the TIL, are we still required to provide the Itemization of Fees Financed disclosure? 13. General Questions How many days from the application date do we have to get the loan to you? 14. General Questions Does LDW still have the 10 days submission rule once the loan is locked? 15. General Questions If a Broker pays for an appraisal can he/she charge it back at closing? TRID applies to all loan applications taken on or after October 3rd, With TRID, the LE replaces the GFE and the TIL, the Servicing Disclosure and Appraisal Disclosure are now included in the LE document and Your Home Loan Toolkit replaces the HUD Settlement Cost Booklet. Brokers must continue to provide all other federal and state required broker disclosures. Refer to the State Specific Disclosure matrix located in the LDW broker portal. No, for applications dated on or after 10/3/15, Brokers will no longer be required to provide borrowers with the Itemization of Fees Financed disclosure. We do not require the loan to be submitted within a specific time frame from the application date, assuming all other documentation meets their respective timing requirements. Yes, Brokers must submit the file in the Broker portal within 10 days of locking the loan. Yes, the Broker will be reimbursed for fees incurred at time of closing/funding. Some examples include; Appraisal, Credit Report, and Condo Cert fee(s). 11/17/15 2

3 16. General Questions Is the Broker permitted to pay for the appraisal and NOT be reimbursed? 17. General Questions If a Broker pays for an appraisal with their credit card, can we order the appraisal at lock or do we need to wait until providing LE to the Borrower? 18. General Questions When can an appraisal be ordered at the borrower(s) expense? 19. General Questions If a Broker has received all of the information required for disclosures but the Borrower refuses to pay for a credit report is the Broker still obligated to disclosure? If so, what steps must be taken? 20. General Questions Is there a new waiting period for purchases in which Saturday is not counted? On a Lender Paid Broker Compensation transaction, the Broker is permitted to pay for an appraisal but must be reimbursed. Any loan fees paid by the Broker must be reimbursed at closing. On a Borrower Paid Broker Compensation transaction, the Broker s compensation may be decreased to pay the appraisal fee and any other loan costs. If a Broker is paying the cost of an appraisal, they may order the appraisal at any stage in the process. No need to wait for the loan to be locked, or the Borrower to receive disclosures and provide their Intent to Proceed. For applications dated on or after 10/3/15, you will be able to order the appraisal, at the borrower s expense, as soon as Loan Setup validates the Intent to Proceed is complete, accurate and signed by the borrower and Accepts the Application. Once the Broker receives the six (6) pieces of information that constitutes an application (Property Address, Property Value, Name, SS#, Income, Loan Amount), the Broker is required to send a Loan Estimate, Service Provider List and other required disclosures. No, there is not. The same waiting period(s) apply to a purchase as any other transaction (excluding recession). 11/17/15 3

4 21. General Questions What constitutes the acceptance of an application by LDW and what documents are needed? 22. General Questions Are brokers supposed to be sending out the "home loan tool kit" and where do we get that from? 23. General Questions Does LDW have an econsent form that we are supposed to use with our submission? 24. General Questions If the purchase contract says the buyer agrees to use ABC title and escrow, can the Broker disclose XYZ title and escrow on the Service Provider list, knowing they won t be used? 25. General Questions What if the buyer's attorney picks the same title co that you have disclosed? 26. General Questions Are we still going to offer the disclosure only option at submission? Refer to the LDW loan submission checklist as acceptance varies by several loan parameters. When the loan submission is accepted, LDW issues the lender disclosures to the Borrower. Yes, brokers are required to deliver or mail the new Home Loan Toolkit within 3 general business days of the application date. Your document provider will have them. Refer to the e-signature Policy that is posted under the Corporate Policies section in the broker website for a list of LDW approved e-sign vendors No, if the title/escrow company is identified at the time of application, the company should be included on the Service Provider List. If the Borrower or Borrower s representative selects a service provider (including title) that is listed on the Service Provider List, provided by the Broker, the fee is considered Section B/Services You Cannot Shop For and therefore subject to the 10% aggregate tolerance for that category. Yes. 11/17/15 4

5 27. General Questions Please clarify when/what fees may be collected upfront? Just credit report correct? 28. General Questions Curious if LDW is aware of any /document encryption requirements that are a part of this new rule? 29. General Questions Are there programs for e- consents that you can suggest? 30. General Questions How do I date the Intent to Proceed? 31. General Questions You mentioned an alternative to providing the CA MLDS. When will that be available for downloading? 32. General Questions Are any of your lender fees or lender specific required forms changing with TRID? 33. General Questions On a purchase loan are we required to disclose the owner s title policy? Correct, under MDIA the only fee that may be collected from the borrower prior to providing their Intent to Proceed is a reasonable credit report fee. We are not aware of any new requirements as a result of the TRID changes. Yes, please refer to the e-signature Policy that is posted under the Corporate Policies section in the broker website for a list of LDW approved e-sign vendors. Let s start with the Application. The LE/SPL must be delivered within 3 general business days of your receipt of the 6 pieces of information that constitutes an application. The Intent to Proceed should be dated and signed on or after the date you delivered the LE. Beginning with application dated on or after 10/3/15, we will accept a borrower signed LE and a signed Addendum in lieu of a CA MLDS. This change will be communicated in the 9/25/15 What s New newsletter and posted on the LDW website. No. Owner s Title Policy should be disclosed in Section H of the LE and CD and has unlimited tolerance. TRID rules state that the fee must be labeled as Title-Owner Policy (optional). 11/17/15 5

6 34. General Questions Now that we are not required to disclose the broker comp is an ASF still required as well as the Broker fee agreement that LDW has? 35. General Questions I understand we are required to send the Home Loan Toolkit out with our disclosures. Is there a signature page or proof of delivery that is required to be acknowledged by the borrower for this booklet? 36. General Questions Many of the state and federal broker disclosures that are posted on your website reference the GFE, TIL, etc. Should we continue to use those forms until TRID updated forms are provided? 37. General Questions Are the Anti-Steering and Mortgage Broker Fee Agreement (MBFA) disclosure still required under TRID? To clarify, Brokers are required to input both Borrower Paid Broker Comp (BPC) and Lender Paid Broker Comp (LPC) into the LE screens in the portal, however, only BPC will be disclosed on the Loan Estimate (LE). Both BPC and LPC will be disclosed on the Closing Disclosure (CD). To answer your question, yes the Anti-Steering Disclosure and Mortgage Broker Fee Agreement are required for all transactions. Refer to the State Required Disclosure matrix that is located in the broker portal for additional information regarding broker disclosures. At this time, we do not require proof that it has been delivered; however, the Broker must provide the Home Loan Toolkit to Borrower within 3 general business days of application date. Yes, we have posted a new disclosure form on our website titled "References and Timing Requirements Notice" that you should include in your initial disclosure package that includes documents with references to forms that are not applicable for TRID applications: Good Faith Estimate, Truth in Lending Disclosure, HUD Settlement Cost Booklet, HUD-1 and HUD-1A. SAMPLE FORM. Yes, TRID impacted only the following disclosure forms (only): GFE, TIL, HUD1, HUD2, Servicing Disclosure, and Appraisal Disclosure. Federal and state requirements and LDW requirements outside of these documents, including the Anti-Steering and MBFA policies are still in place. 11/17/15 6

7 38. General Questions Which disclosures were impacted by TRID? 39. General Questions Will we be allowed to prepare our own LE and send it to the borrower? 40. General Questions Who can I contact to ask questions about a redisclosure and COC? TRID impacted only the following disclosure forms (only): GFE, TIL, HUD1, HUD2, Servicing Disclosure, and Appraisal Disclosure. Federal and state requirements and LDW requirements outside of these documents, including the Anti-Steering and MBFA policies are still in place. We posted and communicated a new disclosure form that is designed to bridge the gap between the old disclosure forms until we are able to get TRID forms posted. Here s a link to the new message - Yes, Brokers will have two options for preparing the LE: 1) BEST OPTION: Within 3 general business days of the application date, Broker will prepare the LE and SPL within the LE screen of the LDW portal. Broker will save the documents as PDF s and deliver them directly to the borrower(s). When the broker is ready to submit the file to LDW, they will upload a copy of the final LE and SPL for LDW Loan Setup review. 2) Broker will prepare the LE and SPL outside of the LDW portal and delivers it to the borrower(s) within 3 general business days of application date. When the broker is ready to submit the file to LDW, they will input the LE and SPL data (that has already been disclosed) into the LE screen in the broker portal and upload a copy of both documents for Loan Setup review. Prior to submitting your file, you should contact portalsupport@ldwholesale.com and after submitted you should contact our Disclosure desk at disclosuredesk@ldwholesale.com. 11/17/15 7

8 41. General Questions What do you accept as "proof of delivery"? 42. General Questions Will LDW accept a pre-cd worksheet or title fee quote from a title company to support a fee disclosed by the Broker on the LE? 43. General Questions Why do I have to put the word Title in front of the escrow fee? 44. General Questions Is it acceptable to lock a loan before taking a loan application? 45. Loan Estimate 46. Loan Estimate Brokers that use Point can input their lenders in the system and the lenders name will print on the LE. Is that ok? If we prepare our own initial LE, do we need to get that into your system by day 3, or can we import ours at the time we are ready to submit the loan to LDW? We offer 3 options for proof of delivery as follows: 1. Primary borrower s signature on the LE, or 2. Primary borrower s signature on the Intent to Proceed that is dated the same date as the LE, or 3. Copy of e-consent/e-receipt by the primary borrower if sent via SDX Yes, we will accept any legitimate document, prepared by a title company to include a title fee quote, pre-cd worksheet, or an invoice. We cannot accept a CD or a HUD to support lower fees. Fee descriptions must begin with "Title" for any item that is a component of title insurance or is for conducting the closing (e)(1)(vi)(A) Yes. We prefer that the lender section/header is left blank but we will not reject an LE solely because LDWholesale s name is on the header. Yes, regardless of which method you choose to prepare the LE, you will upload your version when you are ready to submit the file to LDW. Note: if the loan is locked, you must submit the file within 10 calendar days of date locked. 11/17/15 8

9 47. Loan Estimate 48. Loan Estimate 49. Loan Estimate 50. Loan Estimate 51. Loan Estimate 52. Loan Estimate When we prepare our LE in the LDW Broker portal, will the fees auto-populate and if so, will we have the ability to override any of the auto-populated fees? Will the LE reflect LDW s name when we prepare it in the LDW Broker portal? If we complete our LE through the Broker portal will LDW pre-fill the number of months to be collected for an impound account? If we are intending to prepare the LE thru your system, what date do we put in for the LE Issued, since we haven't yet issued the LE? Who will give the LE to the Borrower? If Loan Depot generates it on their portal, will the LO send and receive a receipt of delivery? How can I send an initial LE without all of the Borrower's information? When you prepare a LE in the LDW portal, standard fee amounts will populate based on info you ve entered. Values will be editable by the Broker prior to generating the LE. Note: if the fees disclosed on the LE are lower than the fees validated by Ernst, you must provide an invoice or a Title Fee Quote (from the settlement agent) at time of submission, to support the lower fees. No, the LE you prepare in the LDW portal will not include LDW s name or loan number. Yes, the number of months will auto-populate based on information you ve provided in the LDW portal. You will enter the date you delivered or mailed the LE to the borrower(s). The Broker is responsible for giving the initial LE to the Borrower. If the LE is generated on LDW s Portal, the Broker will print or save it as a PDF, and deliver it to the Borrower within three (3) business days of the application date. Brokers are responsible for ensuring that the figures stated in the initial LE are made in made in good faith and consistent with the best information reasonably available to the Broker at the time they are disclosed. 11/17/15 9

10 53. Loan Estimate 54. Loan Estimate 55. Loan Estimate 56. Loan Estimate 57. Loan Estimate Will LDW prepare the initial LE if we choose not to? What verifying documents can be asked for from the Borrower before the LE? Will LDW require the borrower to sign the e- Consent before you send the LE? Are HOA Certification fees that need to be paid at closing included in the 0% tolerance section? If so, how would I get that amount on a purchase transaction so early in the loan process? If the fees are auto populated and we think that you are missing some fees, can we add those fees to the estimate? No, Brokers are responsible for preparing and delivering the LE to the borrower. None. The Broker is not permitted to require a Borrower to provide documents or other verifying information related to the application before the Broker provides the LE to the Borrower. Brokers will be able to prepare their LE either outside of the LDW portal or within the LDW portal and they will be responsible for delivering it to the borrower(s). LDW does not require a copy of the e-consent notice, only that the e-consent vendor has been approved by LDW. Refer to the e- signature policy in the corporate policy section of the LDW portal for additional information. If the Broker discloses the HOE Certification fee on the initial LE in good faith, an increase above threshold would be considered a valid change of circumstance, provided that a revised LE is sent within three (3) business days of receiving this information. Note: LDW provides a good faith estimate of HOE Certifications fees in the Broker portal. You will be able to manually enter fees that do not auto-populate. 11/17/15 10

11 58. Loan Estimate 59. Loan Estimate 60. Loan Estimate 61. Loan Estimate If using LDW website to create LE, the fees from approved title/escrow were provided from them, correct? Are we able to increase the fees if we believe that this transaction may have higher fees, such as courier fees or title endorsement fees? Does every title fee need to be broken out individually on LE? Are we still required to put in seller fees in LE (i.e. transfer tax, owners title etc.) Appraisals are now in the 0% bucket but we wouldn't know for a purchase transaction if a completion report will be needed. So if the appraisal fee is increased due to the completion report, what happens? Yes, you will be able to edit the title/escrow fees to include any additional fees that may be required for each particular transaction. Yes, and in alphabetical order with Title- proceeding the fee name. You will enter the borrower and seller paid transfer tax fees into the LE screen in the LDW broker portal but the seller portion will not display on the LE. All other seller paid fees must be entered and will display on the LE. Since the Broker did not know a completion report would be required when the initial LE was provided, this fee would be considered a valid change in circumstance which would require us to send a revised LE within three (3) business days of receiving the changed information. 11/17/15 11

12 62. Loan Estimate 63. Loan Estimate 64. Loan Estimate 65. Loan Estimate 66. Loan Estimate 67. Loan Estimate If a buyer agrees via the purchase contract to allow the seller to select title and escrow, what is the tolerance allowed, if any? Is the lender credit/rebate to the Borrower shown on the LE and/or Borrower paid loans? Since the loan origination fee (broker compensation) is a zero tolerance item, can a Broker lower their Borrower Paid Compensation amount once a loan has received final approval? Who is responsible for the Change of Circumstance? Does the Broker or LDW disclose the LE if any COC occurs? Where do we send a Change of Circumstance? Who is keeping track of tolerances to know if we are over the 10% in order to allow the change of circumstance? If the Borrower or Borrower s representative selects a service provider (title for example) that is not listed on the service provider list, provided by the Broker, the tolerance for that fee is unlimited. Yes, the lender credit/rebate will be shown on the LE. The Broker can lower their compensation amount at any time, up to funding on a Borrower Paid Compensation transaction. The Broker is required to provide a revised LE if the change occurs prior to LDW s acceptance of the submission. If the change occurs after LDW accepts the submission, LDW will provide the revised LE(s). A copy of the revised LE will be also provided to the Broker. Send to the LDW Re-Disclosure Desk, at: LDWDisclosureDesk@LDW.com The Broker is responsible for keeping track of the tolerances and issuing re-disclosed LEs prior to LDW s acceptance of the submission. After acceptance, LDW is responsible. 11/17/15 12

13 68. Loan Estimate 69. Loan Estimate 70. Loan Estimate What is the highest credit report fee we can disclose on the LE? Reports can sometimes range from $20 and up depending on if credit was pulled into LP or DU and then if we have to do credit supplements, etc? What happens if the broker discloses the cost of the appraisal according to the LD Appraisal Fee Schedule, and the AMC indicates that additional fees will be required due to a characteristic of the property that was unknown to the broker? Since appraisal fees are now in the zero tolerance bucket, who becomes responsible for the additional cost? Is it ok to overestimate fees or do they need to be exact as possible? There is no maximum amount that can be quoted for a credit report. The fee must be quoted accurately in good faith. If the Broker is going to utilize a non-standard credit product (for example a rapid re-score), then a higher than average fee is expected and should be disclosed accordingly. Note: Under MDIA, if the Borrower is paying for the credit report upfront, only a reasonable fee for the credit report may be collected. If the appraisal fee increased due to a valid change of circumstance, the LE may be re-disclosed within 3 general business days of the change. Brokers are responsible for ensuring that the figures stated in the LE are made in made in good faith and consistent with the best information reasonably available to the Broker at the time they are disclosed. 11/17/15 13

14 71. Loan Estimate 72. Loan Estimate 73. Loan Estimate 74. Loan Estimate 75. Loan Estimate Does the Borrower need to sign the disclosure within 3 days or does it just need to be delivered within 3 days? Do we need to order loan documents three (3) days after you issue the final LE or can we order loan documents the day the final LE goes out? If the purchase price changes can the transfer tax change? If so, does this qualify as change of circumstance? The transfer tax in Hawaii is based on sales price not loan amount. What if sales price changes as based on definition of application we do not have a solid sales price yet. Can we pre-view the LE to make sure it is correct before we print it? Once I generate an LE, can I regenerate another? The Loan Estimate needs to be delivered to the Borrower within three (3) business days of receiving the six (6) pieces of information that constitutes an application. The CD must be received by the Borrower three (3) business days prior to the closing/consummation date. We ll be working closely with the Brokers to coordinate the closing date to ensure all LE and CD timing requirements are met. Transfer tax increases that are due to a loan amount change or due to a change in vesting (adding/removing a Borrower or trust) are considered a valid change in circumstance and the LE may be redisclosed if sent within three (3) business days of the date was communicated to the Broker or LDW. A good faith estimate of the transfer tax, based on the property value/sales price must be disclosed on the LE. An increase of the property value/sales price would be considered a valid change of circumstance as long as a revised LE is provided within three (3) business days of the date of the change. You may prepare multiple LEs in the LDW broker portal, similar to running various pricing scenarios. It s the LE that you deliver or mail to your borrower that counts. 11/17/15 14

15 76. Loan Estimate 77. Loan Estimate 78. Loan Estimate 79. Loan Estimate 80. Loan Estimate 81. Loan Estimate On a purchase, what if the escrow doesn't get us our fees within the 3 days? Or if the default fees are not the same as the purchase escrow is charging? Will sending the LE, via a password protected , satisfy the proof of e- consent requirement? Does the initial LE need to be signed or acknowledged by the Borrower? VA streamline loans don t require income or value (and we aren t allowed to ask for it). At what point are we required to send an LE? Where does positive discount (rate buy down) go? Are we including redisclosed and/or final LE's in our closing package and if so, are we requiring the borrowers to sign them? You are required to provide a good faith estimate of costs based on the information you have at the time you prepare your LE. If the cost increases beyond tolerance due to a valid change of circumstance (something you would not have known when you prepared the LE), we will need to send a re-disclosed LE within business days of the date the fee changed. Refer to the Electronic Signature Policy in the Corporate Policies section of the LDW website. Borrower signature or acknowledgment is not required, however it is not prohibited. Once the broker receives the remaining 4 pieces of trigger information they broker is required to send an LE, SPL and other required disclosures. A positive discount will be input/displayed in Section A. No, we do not include the final LE in the closing package and we do not require the borrower(s) to sign a re-disclosed or final LE. Evidence of delivery (date sent) is all that is required for the LE. 11/17/15 15

16 82. Loan Estimate 83. Loan Estimate 84. Loan Estimate 85. Loan Estimate 86. Loan Estimate Should the aggregate escrow adjustment appear on the Loan Estimate? When a Broker is using their LOS to generate the LE and wants to send LDW the submission, they have to input their fees into our portal. Does LDW s portal catch the most common Broker/LE errors? Is there something available that states the SPL fee names must match the names on the LE exactly? Where do I enter 3 rd party processing in the LE? We previously had to enter in the section 3. It appears that we now have to enter it in the origination section. Post TRID, what are the total origination fees and discount points since we don t disclose Lender Paid Comp? No, the regulation specifically states the aggregate escrow adjustment should appear on only the Closing Disclosure. If the Broker creates the LE in LDW s portal these mistakes will not occur. However, if the Broker has already created the LE and provided it to the borrower, they must input it exactly as it was created. In other words, once the borrower has the LE it becomes the source document/system of record. Yes, the fee names and amounts on the SPL and the LE must match exactly and must be itemized. You enter 3 rd party (contract) processing fees in Section A/Origination Charges and the system automatically excludes the fee from the QM calculations. Loan Setup then validates the fee is a bona-fide exclusion upon submission prior to advancing the file to Underwriting. Lender Paid Broker Comp is not disclosed on the LE but it is disclosed on the CD therefore you should disclose LPC as you normally would on the Anti-Steering Disclosure form. It s ok to make it clear that this LPC is Compensation Paid by Lender to Broker for This Loan. 11/17/15 16

17 87. Loan Estimate 88. Loan Estimate 89. Loan Estimate 90. Loan Estimate I am preparing an LE in your portal, where do I put the UFMIP refund on the LE? Should the TX Attorney Fee be disclosed in Section A or Section B on the LE? Please kindly advise where we should input the buyer agent credit on LE? How do you handle Contract Processing Fees? The UFMIP Refund will be listed in the lender credits section of the LE. ****If the Broker would like to include the UFMIP amount on the LE, LDW must input it into Empower (LOS) prior to the Broker generating the LE.**** The TX Attorney Fee should be disclosed in Section B/Services You Cannot Shop For. There is a section on the bottom of page 2 of the Purchase LE called Adjustments and Other Credits..Buyer Agent Credit goes there. Contract Processing Fees should be handled as follows. Section A/Origination Fee: If the fee is paid to either LDW (creditor) or loan originator (broker). Section B/Services Borrower Did Not Shop For: If the fee is paid to a true 3 rd party and not paid to either LDW (creditor) or loan originator (broker). 91. Service Provider List Questions 92. Service Provider List Questions 93. Service Provider List Questions 94. Service Provider List Questions On service provider list if we don't know who it will be initially, do we just select one and it would not be held to those fees when actual one is told us? Do the fees on the SPL have to be alphabetized? Does the Third Party Processing company need to be in the SPL? Which fees need to have a service provider disclosed? You should select a provider from the list of LDW approved providers, or one that you have used in the past, enter that vendor into the fee section of the LE so it will then populate your SPL. If the borrower selects the vendor on the SPL, the fee will be in the 10% tolerance bucket. If they select a different vendor, the fee will be in the unlimited tolerance bucket. If you do not list at least one vendor on the SPL for each fee disclosed on the LE, that fee will be in the zero tolerance bucket. No. No, only providers for services that the borrower can shop for should be disclosed on the SPL. Fees in Section C/Services You Can Shop For 11/17/15 17

18 95. Closing Disclosure 96. Closing Disclosure 97. Closing Disclosure 98. Closing Disclosure 99. Closing Disclosure 100. Closing Disclosure Will LDW issue loan documents before the final CDs have been received by the Borrower for the required 3 days? What if it takes certain areas more time to receive and review loan documents? Who issues the Closing Disclosure? How soon are you issuing the CD? If there is a change of circumstance after the CD was given, do you then send out another CD? Do we need to show proof the CD was received by the Borrower before scheduling a closing? Will CD's going out via require an e- signature from the borrower to acknowledge receipt? Are escrow HUD's are still needed? LDW will release final closing docs to the Settlement Agent when proof that the Borrower has received the initial CD is received. A Closing Coordinator will be responsible for seeing that all requirements are met on a timely basis to ensure an on-time closing. LDW will issue the CD to the Borrower. The Settlement Agent is responsible for issuing the CD to the seller. LDW will issue the CD at final approval. LDW will re-disclose the CD with an additional 3 day waiting period if the program changes and/or if the APR increases by more than.0125%. Other changes will be re-disclosed on the final CD that will be signed at closing. A target closing date may be scheduled prior to Borrower s receipt of the CD; however, LDW is responsible for preparing and sending the CD and documenting receipt by the Borrower before confirming the closing date. If the borrower has given their e-consent, LDW will deliver the CD to the borrower(s) via secure electronic delivery where evidence of receipt is the date the disclosures are viewed. If the borrower has not given their e- consent, LDW will deliver the CD to the borrower(s) via standard mail where evidence of receipt is 3 days from the mail date. The HUD-1 will no longer be utilized and has been replaced by the CD. 11/17/15 18

19 101. Closing Disclosure 102. Closing Disclosure 103. Closing Disclosure 104. Closing Disclosure 105. Closing Disclosure 106. Closing Disclosure When the CD is sent to the Borrower by LDW are the Brokers given a copy as well? With a non-table funding state, can the borrower's sign and not fund before the 3 day waiting period of the CE? If we lower any fee, will that trigger to start the 3 days wait period? LDW pays out of tolerance bucket with CD already issued. Does that in turn come from the broker LPC? On o/o properties, nonborrowing spouse has to SIGN the CD (lender s e- sign is fine). Existing title holder(s) have to sign the CD too. Are you going to send the CD to all parties on the transaction? Yes, the Broker will also be provided a copy of the CD at the same time it is sent to the Borrower(s). The loan documents may be drawn and sent to the settlement agent during the CD waiting period, however, the borrower(s) may not sign/close until the 3rd day following receipt of the CD. No. No, Brokers are not permitted to pay out of tolerance cures/credits. All parties of the transaction are required to sign the CD before or at closing, including a non-borrowing spouse (or any non-borrowing title holder). We are going to provide the CD to the primary borrower for both purchase and refinance transactions and the 3 day waiting period begins when the primary borrower e-consents (if SDX) or 3 days after mail date (if paper mailed). 11/17/15 19

20 107. Closing Disclosure 108. Closing Disclosure 109. Closing Disclosure 110. Closing Disclosure How will lock extension fees be treated once the CD is issued? What is required for Proof of Delivery? What are LDW s CD signing requirements? Can a CD be sent out before the 7 days of the LE waiting period has expired OR do we have to wait the 7 days, disclose CD, then wait the 3 days before closing? For extensions on applications dated on or after October 3, A loan is eligible for one free 8 day extension if the closing disclosure (CD) is issued (does not apply to Jumbo loans). When you request the CD, ensure that the rate lock has a minimum of 3 calendar days remaining. Proof of receipt by the primary borrower is all that LDW requires to start the 3 day CD waiting period before consummation. All parties of the transaction (including non-borrowing spouse) are required to sign the CD at or before closing. We provide the CD to the primary borrower only for both purchase and refinance transactions and the 3 day CD waiting period begins when the primary borrower receives the CD, either by e-consents (if SDX) or 3 days after mail date (if paper mailed). All parties of the transaction are required to sign the CD before or at closing, including a non-borrowing spouse (or any non-borrowing title holder). There is no prohibition on disclosing the CD prior to the 7 day LE waiting period, however, it cannot be sent until 1) final approval 2) 1 day after the LE is sent and the 7 day TILA waiting period still applies. 11/17/15 20