Per Ga. Comp. R & Regs. r. 80-11-1-.01, we are providing an acknowledgment of receipt of the RESPA and TILA disclosures (Cx14600, which is a multi-state document, as well as Cx2783), an advanced fee disclosure (Cx2783), and a foreclosure disclosure (Cx1011). Recently, the Georgia Department of Banking and Finance finalized amendments to these regulations (available here: https://dbf.georgia.gov/documents/2015-dbf-final-rulemaking-10-27-2015) with an effective date of November 16, 2015. The finalized amendments were made to conform the Georgia regulations with the new TILA-RESPA Integrated Disclosure rules (“TRID”), which means that changes to the content and configurations of our documents are required.
New Document Cx19978
As a result of these amendments, we will be providing a new “GA Acknowledgment of Receipt” (Cx19978), with dynamic language, which provides an acknowledgment of receipt of all documents required under Georgia’s regulations, when applicable to the type of loan package and the type of loan extended (e.g. references to the GFE will only appear for non-TRID loans and only when the document prints in certain packages, such as Initial Disclosures). These documents are:
- The Good Faith Estimate (Cx14221);
- The HUD-1 or HUD-1/A Settlement Statement (Cx14222 & Cx14223);
- The Loan Estimate (Cx18565);
- The Closing Disclosure (Cx18566);
- The Itemization of Amount Financed (Cx14224 & 14644);
- An “Itemization of Fees” (Cx19175 & Cx19211);
- An “Advanced Fee Disclosure” (Cx2783); and
- A “Foreclosure Disclosure” (Cx1011).
This document will be configured to print under the following circumstances:
- Document Package = Closing
- Document Package = Initial Disclosures
- Document Package = Pre-Closing
- Document Package = Redisclosure
- Document Package = TILA Redisclosure
- State Code = Georgia
This configuration will ensure that Cx19978 will print in the same packages as the documents listed above. Clients who have customized the print configurations for the above listed documents may want to consider reviewing their custom configurations or customize the configurations for Cx19978, in order to ensure that Cx19978 prints in the right packages and/or refers to the correct documents.
Two copies of this document will appear in the packages listed above, since Georgia’s regulations require two copies to be provided if the document is mailed to the borrower (see Ibid. r. 80-11-1-.01). Instructions to the borrower concerning retaining one copy for their records and returning the other to the loan originator are provided on the form.
Due to the fact that a separate acknowledgment of receipt will be provided, we will be removing the current acknowledgment receipt which appears on our Georgia-version of “Advanced Fee/Application Disclosure” (Cx2783).
In addition, there is an odd requirement under these new regulations. These regulations are made pursuant to Ga. Code Ann. § 7-1-1014, which applies to both mortgage lenders and mortgage brokers. Subsection (2)(a) of the regulations provides the following:
“Notwithstanding the requirements set forth in paragraph (1)(a) and (b) [requiring the LE and the CD], prior to the acceptance of any fees, mortgage lenders shall provide applicants for a home equity line of credit or a residential mortgage loan not secured by real property, such as a mobile home, the Good Faith Estimate, HUD-1 disclosures, and all other disclosures required by federal law.”
This requirement basically only allows mortgage lenders (it does not apply to mortgage brokers) to accept fees after a HUD-1 is provided – which constructively means that mortgage lenders may not accept any fees prior to closing. Even more peculiar is the fact that, under Federal law, the settlement agent – not the mortgage lender – is required to provide the HUD-1 to the borrower (see 12 CFR § 1024.10[b]), and the HUD-1 is exempt from being provided for HELOC transactions (see Ibid. § 1024.10[a]).
Nevertheless, to apprise borrowers and lenders of this restriction, the following notice will print on Cx2783 when “HELOC” equals “Yes”:
“IMPORTANT NOTICE: Georgia law prohibits a mortgage lender from accepting any fees prior to providing a Good Faith Estimate, HUD-1 Settlement Statement, and all other disclosures required by federal law (see Ga. Comp. R. & Regs. r. 80-11-1-.01[a]). If the Licensee listed above is not a mortgage lender, the fees outlined below may be accepted in advance, in accordance with applicable law.”
Finally, Cx1011 is provided pursuant to the requirements of Ga. Com. R. & Regs. r. 80-11-1-.01(8), which contains specific text to print on this notice. However, Subsection (8)(c) states that “this disclosure requirement may be satisfied by complying with a substantially similar disclosure as required by federal law.”
We have concluded that the “Security Interest” disclosure which appears on page 4 of the CD is “a substantially similar disclosure” and, therefore, Cx1011 does not need to appear in the same package as the CD. We will be configuring Cx1011 to print when “Integrated Disclosure Loan Indicator” equals “No.”
These changes will take effect on November 14, 2015. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.