Trusts 101
By: Timothy A. Raty, Sr. Regulatory Compliance Specialist
***DISCLAIMER***
Nothing in this article is to be construed as legal advice.
The Nature of a Trust – Part I
“A trust ….
Recent Articles
05.30.17
Time for a Texas Home Equity Overhaul – Texans Set to Amend Their Constitution
Timothy A. Raty
One of the unique features of Texas home equity loans (besides their uncanny ability to cause headaches for compliance professionals) is the fact that the main laws governing them are set forth in the State’s Constitution (Tex….
05.16.17
A Bill to Fix TRID v. State Issues (and More)
By: Timothy A. Raty
While a lot of attention has been paid recently to the latest and greatest attempts to reform the CFPB (e.g. either legislatively through the proposed “Financial CHOICE Act” or judicially through appeals to PHH Corp.…
03.01.17
Regulatory Reform Agenda and TRID: What Does President Trump’s New Executive Order Mean for TRID?
Timothy A. Raty
On February 24, 2017 President Trump signed a new executive order entitled “Enforcing the Regulatory Reform Agenda,” which corresponds with the executive order he signed late in January, entitled “Reducing Regulation and Controlling Regulatory Costs” (Executive Order 13771;…
02.08.17
Dissecting Trump’s Financial “Core Principles” Executive Order
Timothy A. Raty
A lot has been written about President Trump’s recent executive order instructing the Secretary of the Treasury to consult with member agencies of the Financial Stability Oversight Council (“FSOC”) and to provide a report concerning current financial regulations….
01.30.17
Suspension of MIP Decrease = Instatement of Conundrums
Timothy A. Raty
It’s dubious whether, at the time the Department of Housing and Urban Development (“HUD”) suspended[i] their recent rule which would have decreased annual mortgage insurance premiums (“MIPs”) on FHA-insured loans,[ii] anyone realized that at least two conundrums would occur as a result,…
01.16.17
CFPB Increases Civil Money Penalties
Timothy A. Raty
Among the nearly dozen civil money penalties that the CFPB (or any court) is authorized to impose are the infamous “3 Tier” penalties set forth under 12 USCA § 5565 for violations of Federal consumer financial law….
01.11.17
Understanding Higher-Risk Mortgages
by Timothy A. Raty
Higher-Risk Mortgages under the Truth-in-Lending Act
It’s not hard to find mortgage industry professionals who can tell you what a “high-cost mortgage” or “higher-priced mortgage loan” is, particularly if you mention them by one of their shorter designations (e.g.…
05.16.16
Rounding for the Loan Estimate and Closing Disclosure
The rounding rules for the Loan Estimate and the Closing Disclosure are found in 12 CFR § 1026.37(o)(4) and 12 CFR § 1026.38(t)(4), respectively. The Official Interpretation to § 1026.38(t)(4)-2 states:
“For guidance regarding the requirements of § 1026.38(t)(4) [Closing Disclosure],…
02.29.16
Trusts as Borrowers on the Closing Disclosure
At Docutech we strive to continually find solutions for issues that affect our industry. Since the introduction of the TRID rule, we have worked to provide both these solutions, as well as plain language explanations for our regulatory interpretations. One of the questions we have been repeatedly receiving concerns our decision to list trusts as borrowers on the Closing Disclosure. …
01.28.16
How Should an Upfront Mortgage Insurance Premium (UFMIP) Refund Be Disclosed on the Closing Disclosure?
Upfront Mortgage Insurance Premium refunds are possible when a consumer is seeking to refinance a loan. The CFPB has given some guidance on what to do with UFMIP refunds on the Closing Disclosure. In the Section-By-Section Analysis to §1026.38(j)(2), the CFPB identifies three scenarios that may occur when dealing with refunds (including UFMIP refunds). …
01.28.16
Jon Weston Joins Docutech as Executive Vice President of Sales
Docutech capped off a great year of growth by naming Jon Weston as its new executive vice president of sales. Weston will focus on future organizational growth strategies for Docutech and is responsible for building and managing global sales, as well as driving exponential growth within the industry….
08.12.15
Rounding Tables
TRID sets forth different rounding requirements for items disclosed on the Loan Estimate and Closing Disclosure in 12 CFR §§ 1026.37(o)(4) & 1026.38(t)(4), respectively. In addition, they provide guidance on how to disclose numbers when components of such amounts include rounded numbers….
06.09.15
The New CFPB Mortgage Shopping Toolkit
When the TILA-RESPA Integrated Disclosure Rule goes into effect on August 1, 2015, the HUD “Shopping for Your Home Loan: Settlement Cost Booklet” will be replaced with the CFPB “Your home loan toolkit: A step-by-step guide.” This new Toolkit satisfies the RESPA requirement per 12 CFR §1024.6 and the new TILA requirement per 12 CFR §1026.19(g)….
05.12.15
The Definition of Application received on or after August 1, 2015.
By: Amanda McMurtrey
Application is defined in 12 CFR 1026.2(a)(3) as:
“Application means the submission of a consumer’s financial information for the purpose of obtaining an extension of credit. “
The rule provides that the submission may be in written or electronic format and includes a written record of an oral application….
04.29.15
You’ve Got to Give Them Credit . . .
By: Timothy A. Raty, Regulatory Compliance Specialist
Editing by: Abraham Skousen, Compliance Implementation Analyst
Under the new TILA-RESPA Integrated Disclosures rules (“TRID”), both seller and lender credits are to be disclosed on the Loan Estimate (LE) and the Closing Disclosure (CD)….
04.29.15
TRID: the Business Day Rule and the More Precise Business Day Rule
By Anne Marie Poirier-Marquez
Two types of timing requirements pertain to the TILA-RESPA Integrated Disclosures: the Business Day Rule and the More Precise Business Day Rule.
The Business Day Rule
The Business Day Rule is defined in the first part of 12 CFR 1026.2(a)(6):
“Business day means a day on which the creditor’s offices are open to the public for carrying on substantially all of its business functions.”
This rule applies to:
• Loan Estimate – 3 day delivery requirement
• Revised Loan Estimate
• Written List of Providers for which the consumer can shop
• Special Information Booklet
All of the above-listed disclosures must be provided to the consumer within three business days of the creditor’s receipt of the consumer’s application,…
12.04.14
CFPB Proposed Amendments to the TILA-RESPA Final Rule
by Amanda McCurtrey, DocuTech
The Bureau of Consumer Financial Protection has proposed some amendments to the TILA-RESPA Final Rule. The Bureau is proposing to relax the timing requirement for a creditor to redisclose interest rate dependent charges and loan terms,…
11.06.14
FHA Changes Guidelines to Meet Industry Demands
FHA Changes Guidelines to Meet Industry Demands
by Timothy Raty
The Federal Housing Agency (FHA) has recently proposed and enacted several radical changes to their insurance procedures, in an attempt to conform with recent regulatory changes instituted by the Consumer Financial Protection Bureau (CFPB),…
11.06.14
Changing of the Guard: Are You Prepared for Millennials?
Changing of the Guard: Are You Prepared for Millennials to Become the Future of Mortgage Lending?
by Scott K. Stucky
DocuTech’s Chief Strategy Officer, Scott K. Stucky, provides insight in the October 2014 edition of the National Mortgage Professional Magazine about how lenders can prepare for the future of mortgage banking….