Updates

September 24, 2019

Document Updates and Changes

As a result of an ongoing review of our documents to ensure compliance with state and federal requirements, we have made the following changes:

ORFRCAFF/27591 – Purchaser Affidavit for Home in Foreclosure Process. In the state of Oregon if a seller’s home is, or is about to enter, into foreclosure, the buyer must certify that it has presented the notice contained in the document to the seller. If you would like this document added to your doc set please let us know.

August 22, 2019

Document Updates and Changes

eSign System Enhancements

Docu Prep’s enhanced eSign platform will be live as of Friday August 23, 2019. The enhancement will no longer allow individual borrowers to see documents that do not apply to them. For example, the credit score disclosure will only appear to the borrower for whom it applies. The signing experience has not changed and there will be no interruption to your service.

July 17, 2019

Document Updates and Changes

eSign System Enhancements

On July 18, 2019 we will be adding enhancements to our eSign system. Individual borrowers applying jointly with other borrowers for a loan will no longer see documents that do not apply to them, e.g., credit score disclosures. The signing experience has not changed and there will be no interruption to your service.

June 20, 2019

Document Updates and Changes

As a result of an ongoing review of our documents to ensure compliance with state and federal requirements, we have made the following changes:

USARECN1/4562 and AFRESH1/6334  – Changed the words “Closing Disclosure” to “Truth in Lending Disclosures” so forms are usable for loans that are subject to TRID as well as those that are not.  completed 6/14/2019

USAACKN/4551 Removed “Date of Disclosure” and replaced “Date of Contract” with “Date of Transaction” to alleviate confusion with dates on the document.  6/14/2019

June 12, 2019

FHFA Directs GSEs to Delay URLA Implementation

Compliance News Affecting Documentation

Fannie Mae and Freddie Mac have posted that the implementation timeline–including optional and mandatory use periods–will be delayed. Some additional adjustments to the forms also appear to be in the works. Here’s a link to the announcement:

 

September 17, 2018

TRID 2.0 Release Notes

The list below contains the TRID 2.0 changes.

  • Applicants/Borrowers Field. Previously, a strict reading of the rule included a logical reason for including title-only consumers (e.g., non-borrowing spouses) in the “Applicants” field or “Borrower” field—Loan Estimate or Closing Disclosure, respectively, despite the fact that they are neither applying for the loan nor borrowing the funds. The CFPB has been convinced that this result created confusion for consumers and, thus, the “Applicants” and “Borrower” fields are now required to only show those seeking to be, or who will become, primarily obligated to repay the transaction. For the purposes of rescindable transactions (e.g., refinances) the regulation still allows Lenders to collect a signature from a title-only borrower for the purpose off showing proof that the title-only consumer received a copy as required by other parts of regulation Z. As a result of these changes, Docu Prep now excludes title-only consumers from the LE and CD “Applicants” field and “Borrower” field but still prints the name of title-only consumers on a signature line when signature lines are selected to be printed on the LE and CD on rescindable transactions.
  • Estimated Closing Costs Expiration Date. There is a paragraph under the “Rate Lock” date that is displayed on page 1 of the LE, that simply states “All other estimated closing costs expire on [date and time].” Previously, there was some lender confusion whether or not this paragraph relates to the permitted reason under “Revised Estimates” in the rule, which allows a lender to change the costs on the LE and deliver those changes to the consumer without violating the good faith rule if the consumer has not provided “Intent to Proceed” within the timeframe disclosed. There was also Lender confusion as to whether or not a lender should continue to disclose this expiration date on subsequent LEs when the consumer has already provided the Lender with a confirmation of his/her “Intent to Proceed.” The CFPB clarified that, yes, the “Estimated Closing Costs Expiration Date” is related to the Revised Estimates “Expiration” good faith option and that Lenders should leave the date blank on subsequent LEs after the consumer has already provided an “Intent to Proceed.” To comply with this requirement, Docu Prep has updated the LE to not display the “Estimated Closing Costs Expiration Date” any time there is an “Intent to Proceed” entered into the system and received with a request to produce the LE. Note, the rule makes it impossible to receive a consumer’s “Intent to Proceed” prior to delivery of the LE, so Docu Prep does not expect to receive an “Intent to Proceed” on any initial LE requests.
  • In general, on both the LE and CD, TRID 2.0 clarifies that percentages that appear on the forms should be rounded to three decimal places, then any trailing zeroes the right of the decimal placed are dropped, so what may have previously displayed as “4.500%” will now display as “4.5%”.
  • Estimated Property Value. myPortal customers only. Added an “Estimated Value” to the “Loan” screen. If used, and no “Sales Price” or “Appraised Value” is entered, then “Estimated Prop. Value” will appear on the Closing Disclosure. Note: “Appraised Value” and “Sales Price” take precedent over “Estimated Value,” so if either of those fields have a value, the corresponding name will appear in the header section of the Closing Disclosure.
  • Prepaid Interest. Previously, if no per diem interest were collected on a given transaction, the corresponding row in section F. Prepaids, line 3, would be left blank but specific to per diem interest TRID 2.0 requires the disclosure of “$0.00”.
  • Cash to Close Tables. Previously, the regulation required certain rows of the standard and alternating cash to close tables to display a negative amount. The Calculating Cash to Close sections of the regulation have been updated to clarify the calculations related to each row and to allow the rows that were previously written to always be negative to display the appropriate sign, positive or negative, depending on the result of the calculation. Docu Prep uses the data sent from each integrated Loan Origination System to display the numbers on the Closing Disclosure that were calculated by the Loan Origination System.  Note to myPortal customers only: previously, clients were required to select the “Finance” indicator on a per fee basis to populate the “Closing Costs Financed (Paid from your Loan Amount)” row of the Calculating Cash to Close table, but as of this release, this row will be calculated for Docu Prep’s myPortal clients without the need to mark the “Finance” indicator.
  • Cash to Close Tables, part 2. When writing TRID 2.0, the CFPB vacillated on whether or not to require zero amounts in the Cash to Close table on the CD as “$0.00” or “$0”. The result is that a strict reading of the rule would mean some of these fields would be one or the other. The CFPB has provided informal guidance that it would prefer consistency in how zeroes are displayed in the Cash to Close table on the CD and that “$0” would be preferable even in the columns where cents are displayed. As a result of this guidance, Docu Prep has updated the Cash to Close table on the CD to display all zeroes as “$0”.
  • Payoffs and Payments. The rule clarifies that payoffs to other parties should be treated as liabilities to be disclosed under Borrower’s Summary of Transaction, in section K., line 4, on the standard CD or in section K. Payoffs and Payments on the alternate CD for transactions without a seller. For the purposes of disclosing payoffs under the Borrower’s Summary of transaction, in section K on a standard CD, if there are multiple payoffs, the total of payoffs is disclosed on a single line, i.e., line 4, with a reference to see an itemization of such costs on an addendum. The rule clarifies that when payoffs are disclosed in K. Borrower’s Summary of Transaction, they are included in the “Down Payment/Funds from Borrower” calculation, which the CFPB concludes results in a cleaner disclosure than treating payoffs like fees disclosed in section H. Other, which can artificially inflate the “Total Closing Costs (J)” and confuse the consumer into thinking the Lender is charging the consumer more than the Lender is actually charging the consumer to do the transaction. As a result of these changes, Docu Prep, has updated section K on both standard and alternate CDs to receive itemized payoffs and properly display a reference to an addendum, if needed. Please note that in reference to this item that Docu Prep receives the numbers displayed in the Cash to Close tables precalculated from its integrated LOS partners. myPortal customers only: In general, Docu Prep includes payoffs entered on the 1003, VI. Liabilities screen, and marked as payoffs under Borrower’s Summary of Transaction, in section K. line 4, and will automatically include these amounts in the proper calculations in the Cash to Close table.
  • Escrows Table. In relation to the Escrows Table on page 4 of the CD, the CFPB was convinced that mortgage insurance should be included in these disclosures. As a result, Docu Prep has updated the CD to include mortgage insurance in the calculations and in the items listed in this table. The CFPB responded to a commenter’s concern that with mortgage insurance written out as an item, the table may not have enough room. As a result, the CFPB decided that any items that don’t fit should be printed on an addendum. Docu Prep has created an addendum that lists escrow items that don’t fit in the Escrow table.
  • Escrows Table, part 2. In response to a lender request that the CFPB clarify the calculation related to the “Escrowed Property Costs over Year 1” and the “Non-Escrowed Property Costs over Year 1” amounts in the Escrow table, the CFPB decided to provide lenders with an option and stated that it was creating flexibility to meet the desires of investors, as well. As a result, these amounts may be calculated either (1) as payments added up from the date of closing to one year later, or (2) as payments added up from the first payment date to the anniversary of the first payment date one year later. Docu Prep’s CDs now accommodate either option. For Docu Prep’s integrated partners, Docu Prep will receive their pre-calculated amounts and display them on the form. For myPortal customers only: Docu Prep has added the ability to change this on a per file basis by selecting either option from a drop-down on the “Integrated Disclosures” screen, under the “Escrow Account” header.
  • Seller Credits. In an effort to create greater clarity for consumers in regards to seller-specific vs. general seller credits, the regulation now requires that the verbiage that appears under the “Did this change?” column of the Cash to Close table related to seller credits display as “See Seller-Paid column on page 2 and Seller Credits in Section L”. Docu Prep has updated this verbiage.
  • Seller Contributions. TRID 2.0 specifically allows for the disclosure of simultaneous subordinate loans (e.g., simultaneous seconds or down-payment assistant loans) on the alternative version of the LE and CD originally created for transactions that do not involve a seller. The CFPB recognizes that even though simultaneous subordinate loans are “purchase” transactions related to the first-lien, as long as the entirety of the transaction with the seller is disclosed on the first, the alternative forms may be used with the second. But, to address a concern where a lender has already delivered a second on the alternative and the seller then contributes to some of the costs on the second, the regulation requires that the seller’s contribution be captured and displayed in the alternative CD’s section K. Payoffs and Payments table. To accommodate this change, Docu Prep has updated its alternate CD’s Payoffs and Payments table to display just the information included in the description and the amount when the description contains the words “Seller Contribution.” For example, where the Payoffs and Payments table normally displays, “[Name of Recipient of Payoff] to pay off [Name of Item being Paid Off] … [Amount]”. This change means that the hardcoded “to pay off” would not be displayed to provide users with the flexibility needed to add a seller contribution, such as “Seller Contribution towards closing costs on second … -$250.00”.
  • Principal Reductions. The updated regulation has specific ways that it wants Principal Reductions to be displayed on the CD. First, the verbiage “Principal Reduction” should be used, as opposed to “Principal Curtailment,” or some other verbiage that means the same thing. Second, the regulation differentiates between Principal Reductions for good faith violations vs Principal Reductions for everything else. If the principal reduction is related to a good faith violation, then the words “for exceeding the legal limit” must be included in the description related to the principal reduction. Third, if the principal reduction will take place at closing and affect the transaction, then it is entered with the amount of the principal reduction in the “Amount” column but if the principal reduction is being delivered after closing on a post-consummation CD, then the amount of the principal reduction is included with the description and the “Amount” column is left blank so as not to change the numbers on the transaction. For example, a lender would enter the following:

    • At close: “Principal Reduction to Consumer paid by Lender … -$500.00”
    • At close: “Principal Reduction to Consumer for exceeding legal limits paid by Lender … -$500.00”
    • After close: “$500.00 Principal Reduction to Consumer P.O.C. Lender … ____”
    • After close: “$500.00 Principal Reduction to Consumer for exceeding legal limits paid by Lender … ____”

Fourth, if either of the “At close” options that include entering an amount in the “Amount” column of section K, then the Cash to Close table calculations should reflect the addition of the principal reduction and a bullet point should appear under the “Did this change?” column that references the principal reduction and the reason for it.

Docu Prep has updated the CD to be able to receive the above descriptions as filled out by clients and sent to Docu Prep for both the standard CD, i.e., in the page 3 Borrowers Summary of Transaction section and the alternate CD, i.e., in the page 3 Payoffs and Payments section. The Docu Prep system is looking for the words “Principal Reduction” to remove other verbiage and receive the description as sent to Docu Prep. Users are responsible for ensuring that they fill out the form properly.

myPortal customers only: to get the proper result, make sure that on the 1003, VI. Liabilities screen, select “Other Liability” from the “Liability” drop-down menu, enter the appropriate verbiage from the examples above in the description line, enter the appropriate amount or leave the “Unpaid Balance” field blank, mark the “Payoff” box, and leave the “Holder Name” field blank, then save the file. When you send the request file, the Principal Reduction will appear in the appropriate location independent of whether you are using the standard or alternate form. If the principal reduction takes place at closing and an amount is entered as described above, the Docu Prep system will also update the amount displayed in the Cash to Close table and properly display the new required “Did this change” bullet points that reference the principal reduction and reason for the principal reduction.

  • Inspection and Handling Fees. The updated regulation requires the disclosure of “Inspection and Handling Fees” related to certain construction loans. Lenders are required to disclose this as an aggregate amount, if the lender has an idea of what the total of “Inspection and Handling” fees will be on a given transaction, it discloses that amount; however, if the lender does not know what the total of “Inspection and Handling Fees” will be, the regulation requires lenders to disclose “Inspection and Handling Fees” based on previous similar transactions. The regulation differentiates between “Inspection and Handling Fees” paid at closing vs “Inspection and Handling Fees” paid after closing. “Inspection and Handling Fees” paid at closing are entered like a normal fee on page 2 of the LE or CD, in the section that is appropriate to who is requiring or imposing the “Inspection and Handling Fees.” For “Inspection and Handling Fees” that will be collected post-closing, the regulation requires that the “Inspection and Handling Fees” appear on an addendum to the CD and that they be included in the “Finance Charge” and “In 5 Years” (LE) or “Total of Payments” (CD) calculations. Docu Prep has updated its LE and CD to incorporate “Inspection and Handling Fees” in the appropriate locations and calculations. Docu Prep has given all of its integrated Loan Origination Systems a way to transmit in the loan file whether or not the “Inspection and Handling Fees” are paid post-closing. For myPortal customers only: Docu Prep added a field to the “Integrated Disclosures” screen under the “Closing Disclosure” header called “Inspection and Handling Fees (collected after closing)” where the total for this amount should be entered.
  • Loan Term. Previously, construction-only loans were coded to show 12 mo. Clarifications state that any terms equal to whole years should be expressed as whole years. A loan term of “12 mo.,” even on construction loans, will now show as “1 Year.”
  • Specific to construction-only, and separately disclosed construction and permanent transactions, the construction-related LE and CD will display a product that is representative of just the number of months for which the interest-only feature applies, e.g., a 12 month construction loan with 11 months of interest and a balloon payment at month 12 will read, “11 mo. Interest Only, Fixed Rate.”
  • Loan Terms Table. For loan periods of less than 24 months, the bullet point explanations for Interest Rate and Monthly Principal & Interest that represent periods of time, will now display in months unless the number of months is equal to a whole year.
  • Projected Payments. For loan periods of less than 24 months, the projected payments table will no longer reflect changes in months; instead, it will only display in years. Clarifications in TRID 2.0 point to the disclosure of the Projected Payments table always displaying in years.
  • Projected Payments – Estimated Taxes, Insurance, and Assessments. “Property Taxes” represent all types of property taxes and “Homeowner’s Insurance” represent all types of homeowner’s insurance. If some of either are “in escrow” and some are “waived,” then the “In Escrow?” column of the table will show “SOME”. The same is true of all of the items that could appear in the “Other” row of the same; i.e., if some of the items included in that row are escrowed and some are not, then “SOME” will display in the “In Escrow?” column.
  • Adjustable Payment (AP) Table. For any construction loans with an ARM feature, the AP Table will always display in addition to the Adjustable Interest Rate (AIR) Table.
  • Taxes, Insurance, and Assessments. The updated regulation clarifies that “Property Taxes” in the “Estimated Taxes, Insurance, & Assessments” row of the Projected Payments table on page 1 of the LE and CD represents the aggregate of all property taxes on the loan and that “Homeowner’s Insurance” represents the aggregate of all homeowner’s insurance on the loan. The rule further clarifies that in response to the “In escrow?” column of this table, is some of the items that make up these aggregates are in escrow and some not in escrow, that the form should display “SOME” in relation to that aggregated amount. Docu Prep has updated the form to show these items appropriately. As a result of this change, only non-tax and non-insurance items are itemized in the “Other” row, which means that homeowners association dues are the primary type of item that shows up itemized in “Other” line.

August 31, 2018

Document Updates and Changes

As a result of an ongoing review of our documents to ensure compliance with state and federal requirements, we have made the following changes:

The following TRID 2.0 changes to the Loan Estimate & Closing Disclosure have been completed as of August 30, 2018. 

Loan Term – Previously construction-only loans were coded to show 12 mo. Clarifications state that any terms equal to whole years should be expressed as whole years. A loan term of “12 mo.,” even on construction loans, will now show as “1 Year.”

Product – Specific to construction-only, and separately disclosed construction and permanent transactions, the construction-related LE and CD will display a product that is representative of just the number of months for which the interest-only feature applies, e.g., a 12 month construction loan with 11 months of interest and a balloon payment at month 12 will read, “11 mo. Interest Only, Fixed Rate.”

Loan Terms Table – For loan periods of less than 24 months, the bullet point explanations for Interest Rate and Monthly Principal & Interest that represent periods of time, will now display in months unless the number of months is equal to a whole year.

Projected Payments – For loan periods of less than 24 months, the projected payments table will no longer reflect changes in months; instead, it will only display in years. Clarifications in TRID 2.0 point to the disclosure of the Projected Payments table always displaying in years.

Projected Payments – Estimated Taxes, Insurance, and Assessments. “Property Taxes” represent all types of property taxes and “Homeowner’s Insurance” represent all types of homeowner’s insurance. If some of either are “in escrow” and some are “waived,” then the “In Escrow?” column of the table will show “SOME”. The same is true of all of the items that could appear in the “Other” row of the same; i.e., if some of the items included in that row are escrowed and some are not, then “SOME” will display in the “In Escrow?” column

Adjustable Payment (AP) Table – For any construction loans with an ARM feature, the AP Table will always display in addition to the Adjustable Interest Rate (AIR) Table.

May 4, 2018

Document Updates and Changes

As a result of an ongoing review of our documents to ensure compliance with state and federal requirements, we have made the following changes:

IDKSINS/19452 removed the section on the document referring to the cost of hazard insurance obtained from the lender as this is not a required on the form  completed 05/04/2018

April 9, 2018

Document Updates and Changes

As a result of an ongoing review of our documents to ensure compliance with state and federal requirements, we have made the following changes:

MDWETSET/8127 Maryland Wet Settlement Authorization – updated to include MD Code Ann. Real Prop Sec 4-106(b)(2) and updated verbiage completed 04/04/2018

WAFSLDIS/27030 Washington State Federal Student Loan Refinance into Mortgage Disclosure – new document created due to WA Senate Bill, available upon request completed 04/03/2018

RD198019/14348 VA Guaranteed Loan Closing Report Form – updated to current USDA version completed 04/05/2018

UHFA144A/22547 UHC Loan Submission Checklist – updated to current UHC version completed 04/05/2018

March 30, 2018

Document Updates and Changes

As a result of an ongoing review of our documents to ensure compliance with state and federal requirements, we have made the following changes:

IAPREAPP/8107/Iowa Purpose of the HUD/FHA Appraisal – Will be removed from criteria as the disclosure is not required by state or FHA   completed 3/30/2018

OH1061G/19395/Ohio Notice of Change in Mortgage Terms – Revisions to Ohio House Bill 199 eliminated the requirement for this disclosure   completed 3/30/2018

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