ComplianceOne Solution mortgage. Closing Disclosure

Transcription

1 ComplianceOne Solution mortgage Closing Disclosure

2 This publication was written for the ComplianceOne Solution (mortgage). Publication Information / Version Closing Disclosure Revision Date: February 2015 Distributed Subject to Terms of a License or other Agreement The contents of this publication, including its appendices, exhibits, and other attachments, as updated or revised, are highly confidential and proprietary to Wolters Kluwer Financial Services, Inc. or its subsidiaries or affiliates ( Wolters Kluwer Financial Services ). This publication is distributed pursuant to a Non-Disclosure Agreement, Evaluation Agreement, License Agreement and/or other similar agreement(s) with Wolters Kluwer Financial Services, Inc. or its subsidiary or affiliate. Unless otherwise specifically provided in such agreement(s), the reproduction of this publication is strictly prohibited. Use and distribution of this publication are also subject to the responsibilities and obligations of such agreement(s), which require confidential treatment of this publication and its contents. Information in this guide is subject to change without notice and does not represent a commitment on the part of Wolters Kluwer Financial Services. Do Not Reproduce or Transmit Unless otherwise specifically authorized in the agreement or license under which this publication has been provided, no part of this publication may be posted, played, transmitted, distributed, copied or reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or retaining on any information storage and retrieval system, without prior written permission from Wolters Kluwer Financial Services. Requests for permission to reproduce content should be directed to Wolters Kluwer Financial Services, Inc., Corporate Legal Department, by telephone at Not a Substitute for Legal Advice This publication is intended to provide accurate and authoritative information about the subject matter covered based upon information available at the time of publication. Examples given in this publication are for illustrative purposes only. Development of this publication and the software (including forms, disclosures, reports, and other documents generated by the software) or other products that it describes was based on Wolters Kluwer Financial Services' understanding of various laws, regulations and commentaries. Wolters Kluwer Financial Services cannot and does not guarantee that its understanding is correct. This publication is not intended, and should not be used, as a substitute for legal, accounting, or other professional advice. Wolters Kluwer Financial Services is not engaged in providing legal, accounting or other professional services. If legal or other professional assistance is required, you should seek the services of a competent professional. We encourage you to seek the advice of your own attorney concerning all legal issues involving the use of this publication and any products described in this publication. If your interpretations or your counsel s interpretations are contrary to those expressed in this publication, you should of course, follow your/your counsel s interpretations. The following notice is required by law: WOLTERS KLUWER FINANCIAL SERVICES PRODUCTS AND SERVICES ARE NOT A SUBSTITUTE FOR THE ADVICE OF AN ATTORNEY. Warranty Disclaimer Except only for the warranties (if any) expressly set forth in the agreement(s) under which this publication is provided (i.e., your agreement or license for the described product), this publication is provided as is, and Wolters Kluwer Financial Services makes no warranty, express, implied, by description, by sample or otherwise, and in particular and without limitation, makes no implied warranties of merchantability or fitness for purpose. No modifications to this Warranty Disclaimer are authorized unless in writing and signed by the President or a Vice President of the Wolters Kluwer Financial Services entity licensing the product described in this publication. Attributions and Acknowledgements ComplianceOne is a registered trademark of Wolters Kluwer Financial Services. All trademarks are the property of their respective owners. Copyright Information 2015 Wolters Kluwer Financial Services, St. Cloud, Minnesota This publication is the confidential information of Wolters Kluwer Financial Services. Distribution of this publication is subject to restrictions in the license or agreement under which this publication is provided to authorized Wolters Kluwer Financial Institution customers. All rights reserved. ii Closing Disclosure

3 Table of Contents Closing Disclosure... 1 Closing Disclosure (page one)... 1 Closing Disclosure (page one)... 2 Loan Terms (page one)... 3 Projected Payments (page one)... 4 Costs at Closing (page one)... 5 Closing Disclosure (page two)... 6 Loan Costs (page two)... 7 Other Costs (page two)... 8 Lender Credits (page two)... 8 Closing Disclosure (page three)... 9 Calculating Cash to Close (page three) Summaries of Transactions (page three) Additional Information (page four) Closing Disclosure (last page) Loan Calculations (last page) Other Disclosures (last page) Contact Information (last page) Closing Disclosure iii

4 iv Closing Disclosure

5 Closing Disclosure This guide provides information about ComplianceOne mortgage and the Closing Disclosure. Each section in the loan estimate is displayed followed by the fields in ComplianceOne mortgage that affect the section. Closing Disclosure (page one) Closing Disclosure 1

6 Closing Disclosure (page one) A B C D E F G H I J K L M N O P Q Date Issued: The date entered on the Document Data page prints here. Closing Date: The date entered in the Transaction Data section on the Document Data page prints here. Disbursement Date: The date entered on the Document Data page prints here. Settlement Agent: The information entered on the Document Data page prints here. File#: The information entered on the Document Data page prints here. Property: The information entered in the Property Address fields on the Collateral page prints here. Sale Price: The amount entered in the Sales Price field on the Collateral page prints here. A seller must also be added to the collateral for the sale price to print. Est Property Value: If a seller was not added to the collateral, the Sales Price field on the Loan Estimate will change to Est Property Value. The amount entered on the Document Data page prints. Borrower: The name and address of the first borrower entered on the Parties page prints here. Names and address of additional borrowers print on Closing Disclosure Addendum and each additional borrower receives their own Closing Disclosure. Seller: This information entered in the Seller section on the Collateral page prints here. The address can be changed on the Document Data page. Lender: The name selected in the Organization drop-down list on Loan Definition screen prints here. Loan Term: The information entered on the Calculations page prints here. Purpose: Purchase prints if the Purchase Money option is selected on the Collateral Details page. Product: The selection from the Rate Type drop-down list on the Calculations page (fixed/variable and how often changes) prints here. Loan Type: The selection from the Type of Mortgage drop-down list prints here. Loan ID#: The information from the Loan Number field on the Loan Definition page prints here. MIC#: The number entered under the Transaction Data header on the Document Data page prints here. 2 Closing Disclosure

7 Loan Terms (page one) A B C D E Loan Amount: The loan amount is rounded to whole dollars. Cents are not disclosed. Can this amount increase after closing?: NO prints for amortized loans. YES prints if the interest rate or monthly principal and interest can change. Interest Rate: The Fixed or Variable rate from the Calculations page prints here. For variable rates, the initial interest rate prints. If the initial interest rate is not known, the fully indexed rate prints. Can this amount increase after closing?: NO prints for fixed rate loans. YES prints for adjustable rates and includes the frequency of interest rate adjustments, the date when the interest rate may first adjust, the maximum interest rate, and the first date when the interest rate can reach the maximum interest rate. The date disclosed is the year when the event occurs, counting from the date that interest for the first scheduled periodic payment begins to accrue after consummation and references the Adjustable Interest Rate (AIR) Table on page 2 of the Loan Estimate. Monthly Principal & Interest: The calculation from the Calculations page prints here. Can this amount increase after closing?: ComplianceOne mortgage determines the text that prints here. Prepayment Penalty: This item is not supported at this time. Balloon Payment: NO prints if the Amortized balloon/balloon option is not selected as the Repayment Method on the Calculations page. If Balloon is selected as repayment method, YES prints, and the balloon amount due at the end of term. Closing Disclosure 3

8 Projected Payments (page one) A B C The Projected Payments section shows estimates of the periodic payments the consumer will make over the life of the loan. The Principal & Interest; Mortgage Insurance; Estimated Escrow; Estimated Total Monthly Payment; and Estimated Taxes, Insurance, & Assessments must be disclosed even if they are not paid with escrow funds. Depending on the transaction, one or up to four columns may display in this section. The first column will list the initial Periodic Payment for the Principal & Interest, Mortgage Insurance, and Estimated Escrow. Depending on the features of the loan, subsequent periodic payments may be required to be disclosed. Mortgage Insurance: The Lender must automatically terminate Mortgage Insurance or any functional equivalent) Even if the borrower may cancel the insurance earlier, use the date on which the lender must automatically terminate Mortgage Insurance coverage under applicable law. Additional columns may be added for triggering events during the life of the loan such as the following: Principal & Interest: If the amount or range amount changes, (Example: The loan has an adjustable rate,) this column displays. Negative Amortization: If the loan has a Negative Amortization feature, this column displays. Interest Only: If the Principal & Interest amount changes when the Interest Only period ends, this column displays. Scheduled Balloon Payment: If the loan has a schedule balloon payment, this column displays. Periodic Payment: If the amount changes more than once in a single year, this column displays. 4 Closing Disclosure

9 Costs at Closing (page one) A B Estimated Closing Costs: All fees including escrow amounts print. Estimated Cash to Close: The amount in the Calculating Cash to Close section on page 3 prints. Refer to the Calculating Cash to Close section later in this document.) Closing Disclosure 5

10 Closing Disclosure (page two) 6 Closing Disclosure

11 Loan Costs (page two) A Loan Costs and Other Costs: Amounts are calculated from the Calculations page. Fees will display in applicable category based upon the selection made in the Section drop down on the Fees detail page or based on the completed escrow table on the Calculations page. Closing Disclosure 7

12 Other Costs (page two) A Loan Costs and Other Costs: Amounts are calculated from the Calculations page. Fees will display in applicable category based upon the selection made in the Section drop down on the Fees detail page or based on the completed escrow table on the Calculations page. Lender Credits (page two) 8 Closing Disclosure

13 Closing Disclosure (page three) Closing Disclosure 9

14 Calculating Cash to Close (page three) A B C The Calculating Cash to Close section changes if a seller is/is not involved in the loan. If a seller is added to the Collateral Details page, the Calculating Cash to Close section includes Down Payment/Funds from Borrower, Deposit, Funds for Borrower, Seller Credits, Adjustments and Other Credits. These amounts entered at the bottom of the Calculations page print here. Down Payment/Funds from Borrower: The amount is calculated based on the difference between Sales Price and the loan amount. If the loan amount exceeds the Sales Price, then $0 is disclosed. Purchase Money must be selected on the Collateral page for this item to print. Deposit: When transferred to the Closing Phase, this amount will default to Closing Cost Funds section on the Closing Disclosure. Seller Credits: When transferred to the Closing Phase, this amount will default to Adjustment section on the Closing Disclosure. If Seller is not added to the Collateral Details page, the Calculating Cash to Close section includes Loan Amount and Estimated Total Payoffs and Payments. The Estimated Total Payoffs and Payments are completed at bottom of Calculations page. 10 Closing Disclosure

15 Summaries of Transactions (page three) A B Information for the Summaries of Transaction section is completed on the Closing Disclosure page accessed from the top menu when you are in the Closing phase of the transaction. Seller information may be extracted from this page and print on separate page if you set up separate disclosures when creating a Document Policy in administration. Closing Disclosure 11

16 B If a seller is not added to the Collateral Details page, the Payoffs and Payments section prints on page three. This information is completed on the Calculations page. 12 Closing Disclosure

17 Additional Information (page four) Closing Disclosure 13

18 A B C D E F G H Assumption: This payment is not supported at this time. Demand Feature: The checkbox selection is determined by selecting an option on the Document Data page. Late Payment: This information is set up in administration and selected from a drop-down list on the Calculations page. Negative Amortization: The checkbox selection is determined by ComplianceOne mortgage based upon repayment terms. Partial Payments: The checkbox selection is determined by selecting an option on the Document Data page. Escrow: The information entered on the Escrow page in Calculations prints here. Adjustable Payment (AP) Table: Amounts will be determined from Calculations page when these payments are supported. Adjustable Interest Rate (AIR) Table Index + Margin: The index name and margin entered on the Calculations page prints. Initial Interest Rate: The rate is calculated from the Calculations page. Minimum/Maximum Interest Rate: The rates are calculated from the Ceiling and Floor Definition fields on the Calculations page. First Change: The information entered in the Initial Rate Hold Term field on the Calculations page prints. Subsequent Changes: Information entered in the Subsequent Change field on the Calculations page prints. Limits on Interest Rate Changes: The information entered in the Periodic Cap field on the Calculations page prints when applicable. 14 Closing Disclosure

19 Closing Disclosure (last page) Closing Disclosure 15

20 Loan Calculations (last page) A Loan Calculations: This section includes Total off Payments, Finance Charge, Amount Financed, APR (Annual Percentage Rate), and TIP (Total Interest Percentage) sections. 16 Closing Disclosure

21 Other Disclosures (last page) A Liability after Foreclosure: The checkbox selection is determined on the Document Data page. Closing Disclosure 17

22 Contact Information (last page) A B Mortgage Broker and Settlement Agent: this information print if the Identify a second contact check box is selected on the Loan Definition page and the information is entered on the Document Data page. Confirm Receipt: This section displays depending on your selections when setting up a Document Policy in administration. 18 Closing Disclosure