Loan Estimate Training Guide

Transcription

1 ComplianceOne mortgage Product Training Loan Estimate Training Guide

2 This publication was written for the ComplianceOne mortgage. Publication Information / Version Loan Estimate Training Guide Revision Date: December 2016 Distributed Subject to Terms of a License or other greement 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 greement, Evaluation greement, License greement 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 dvice 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 FINNCIL SERVICES PRODUCTS ND SERVICES RE NOT SUBSTITUTE FOR THE DVICE OF N TTORNEY. 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. ttributions and cknowledgements ComplianceOne is a registered trademark of Wolters Kluwer Financial Services. ll trademarks are the property of their respective owners. Copyright Information 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. ll rights reserved. ii Loan Estimate Training Guide

3 Contents Loan Estimate... 1 Loan Estimate (page one)... 1 Loan Estimate (page one)... 2 Loan Terms (page one)... 3 Projected Payments (page one)... 4 Costs at Closing (page one)... 5 Loan Estimate (page two)... 6 Closing Cost Details (page two)... 7 Calculating Cash to Close (page two)... 8 djustable Payment (P) Table and djustable Interest Rate (IR)Table (page two)... 9 Loan Estimate (page three) dditional Information bout This Loan (page three) Comparisons (page three) Other Considerations (page three) Loan Estimate Training Guide iii

4 iv Loan Estimate Training Guide

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

6 Loan Estimate (page one) B C D E F G H I J K Date Issued The date entered on the Document Data page prints here. pplicants You can determine if you want the word, and included on documents when a transaction has two or more applicants. In the Document Data section, select the Signify where to include 'and' between Borrower names option. Property Information entered for the property address on the Collateral page prints here. Sale Price The amount entered in the Sales Price field on the Collateral page prints here. seller must also be added to the collateral for the sale price to print. Est Property Value If the collateral has no seller, the field titled Sales Price on the Loan Estimate will change to Est. Property Value. The amount entered in the ppraisal field on the Collateral page prints here. Loan Term This information is entered on the Calculations page. Purpose The option selected in the Integrated Disclosure Purpose drop-down list on the Loan Definition page prints as the Purpose on the Loan Estimate. Product The selection from the Rate Type on the Calculations page (fixed/variable and how often changes) prints. Loan Type The selection from the Type of Mortgage drop-down list prints. Loan ID# The information from the Loan Number field on the Loan Definition page prints. The ID number must match the Loan ID number used for the Closing Disclosure. Rate Lock If a date is entered in the Rate Lock Date field on the Calculations page, the YES box is checked. If no date is entered, the NO box is checked. 2 Loan Estimate Training Guide

7 Loan Terms (page one) B C D E Loan mount 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 djustable Interest Rate (IR) 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 Prepayment penalty is not supported at this time. Balloon Payment NO prints if the mortized 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. Loan Estimate Training Guide 3

8 Projected Payments (page one) B C The Projected Payments section shows estimates of the periodic payments the consumer will make over the life of the loan. If the loan does not include escrowed payments, the Estimated Taxes, Insurance and ssessments and the Monthly Payment includes the amounts disclosed in the non-escrowed fields on the Calculations page. The checkboxes for this estimate can be selected on the Document Data page. Estimated Taxes, Insurance, and ssessments 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. If there is no Mortgage insurance, a zero prints in this column. dash prints in the column when the mortgage insurance is terminated. dditional 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 mortization: If the loan has a Negative mortization 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 Loan Estimate Training Guide

9 Costs at Closing (page one) B Estimated Closing Costs Estimated closing costs include all loan costs, Other Costs, and Lender Credits. 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.) Loan Estimate Training Guide 5

10 Loan Estimate (page two) 6 Loan Estimate Training Guide

11 Closing Cost Details (page two) Loan Costs and Other Costs mounts 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-Paid fees will display in the applicable category and as Lender Credits. Loan Estimate Training Guide 7

12 Calculating Cash to Close (page two) With a Seller Without a Seller B C D 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, djustments 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: In the pplication Phase, this amount is manually entered on the Calculation page. When transferred to the Closing Phase, this amount defaults in the Closing Disclosure menu. Seller Credits: In the pplication Phase, this amount is a total of any Seller Paid fees and generalized seller credits that are manually entered. If a Seller is not added to the Collateral Details page, the Calculating Cash to Close section includes Loan mount and Estimated Total Payoffs and Payments. The Estimated Total Payoffs and Payments are completed at bottom of Calculations page during the pplication Phase. Calculating Cash to Close For more information about how this table is calculated, refer to the Calculating Cash to Close Training Guide. 8 Loan Estimate Training Guide

13 djustable Payment (P) Table and djustable Interest Rate (IR)Table (page two) B djustable Payment (P) Table mounts will be determined from Calculations page. djustable Interest Rate (IR) 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: The 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. Loan Estimate Training Guide 9

14 Loan Estimate (page three) 10 Loan Estimate Training Guide

15 dditional Information bout This Loan (page three) B C D E Lender/NMLS/ Information for these items is set up in Organizations in dministration. In the transaction, the lender is selected from Organization drop-down list in Loan Definition. Loan Officer/NMLS Information for these items is set up in Contacts (Loan Officer) in dministration. In the transaction, the loan officer is selected from Loan Officer drop-down list in Loan Definition. License ID (NMLS) This information is collected on the Document Data page. and Phone The information for the selected loan officer prints here and is set up in the Contact section of administration. Information set up in Organizations does not print here. Mortgage Broker This item is not supported at this time in the application phase. Comparisons (page three) This information is calculated by ComplianceOne mortgage. Loan Estimate Training Guide 11

16 Other Considerations (page three) B C D Homeowner s Insurance This information prints if the checkbox is selected on the Document Data page. Late Payment This information is set up in the Fees & Charges section in dministration. In the transaction, the late charge is selected from a drop-down list on the Calculations page. Servicing This information is set up in Documents section in dministration. user cannot change this option in the transaction. Signature Lines This information is set up in the Documents section in dministration. user cannot change this option in the transaction. If Signature Lines are not set up in dministration, the following sentence will print below the Late Payment. Loan cceptance: You do not have to accept this loan because you have received this form or signed a loan application. 12 Loan Estimate Training Guide