Putting all the pieces of loan compliance together Rebecca Ketter, CCBCO 6/19/09 A Big Year for Changes Unparalleled crisis brings unparalleled reaction… HOEPA/HMDA TILA RESPA HVCC SAFE An alphabet soup of changes!!! “HIGHER PRICED” – 10/1/2009
Putting all the pieces of loan compliance together
Rebecca Ketter, CCBCO 6/19/09
Unparalleled crisis brings unparalleled reaction…
An alphabet soup of changes!!!
“Higher-priced mortgage loans” - “consumer credit transactions secured by consumers’ principal dwellings” that are
Note: Requirements for “higher-priced loans” extend to home purchase and home improvement loans and refinances as proposed
Compliance is mandatory for loan applications taken on or after October 1, 2009 and for all loans that close on or after January 1, 2010 (regardless of the application date).
We cannot charge the customer any fees, other than a credit report fee
Seven (7) business day waiting period
Principles of RESPA Reform
Not until 1/1/2010
Some closing costs will have tolerance levels; we will have 30 days from the date of closing to correct errors, and repay consumers any overcharges, to avoid violations.
The loan originator is bound, within the tolerances, to the settlement charges and terms listed on the GFE provided to the borrower, unless a new GFE is provided prior to settlement.
GFE Page 1
GFE Page 2
GFE Page 3
Inadvertent or technical errors
not a violation of RESPA Section 4
IF revised HUD-1 is provided within
30 calendar days after settlement
Fee Categories – 700s
Fee Categories – 1100s
Means any service involved
in the provision of title insurance
(Lender’s & Owner’s)