Initial Written Estimate (Before Loan Estimate)
To what can you do before giving out a Loan Estimate? Well one thing is giving a written estimate, just not an official Loan Estimate ...
We always get this Wednesday newsletter out at 6:00 am on Wednesday ... if you're receiving this later than that, sorry! Operator error!
We all know that once you get those magic 6 pieces of information (whether verbally or by notarized express delivery) - Name, Income, SS #, Address, Estimate of Property Value, Loan Amount - then we have an "Application" and MUST deliver the Loan Estimate within 3 days.
But what about when you want to give a borrower a little information before then? Maybe before the borrower gives you much more than her name?
Maybe your originators deliver borrowers an Excel file with rates that they created themselves. Maybe you have a bank-approved document that all originators are required to use.
Well this is still okay! Just remember these simple rules under TRID ... Whenever a lender provides a written estimate to the borrower with terms and costs specific to the borrower, prior to giving the Loan Estimate, it must:
State that "Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan."
This must be at the top of the first page of the written estimate
This mandatory sentence can't be any smaller than 12 pt font (nothing wrong with using a larger size)
This must NOT look like the Loan Estimate (don't follow similar formatting, headers, etc.) ... feel free to use any other format
Follow the format in TILA's Appendix H-26 if you really want to be perfect. This is the recommended, although not mandatory formatting, and looks like this:
Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.
So remember, this is only required where it is a written estimate and specific to the particular borrower. It does not apply to verbal discussions- although you might do well to coach loan originators on including this in e-mails. And this doesn't apply to generic documents. For example, if you have a generic document of typical closing costs that you deliver to all borrowers, that technically wouldn't require this disclosure- but this is one instance where you might want to play it safe (this isn't too hard to just comply with).
In other news:
Oh no, new competition for SCA! Benjamin Lawsky is retiring from government to start his own law firm/consulting business ... can't believe none of you made him a better offer!
Struggling with your golf game? Here's the best instructional video out there ... fix your game in just a couple of minutes!
Here's an interesting article on coping with delays to closing (ever more of a "hot topic" with TRID coming up). Here's just a quick excerpt: "Of course, one of the biggest bumps in the bumpy transaction, is clearing the loan for closing. Although the loan salesperson will opine relentlessly that both the purchase and the co-op or condo have been 'pre-approved,' sooner or later, the Darth Vader of the loan process, the underwriter, starts waving the loan saber and things grind to a standstill."
Me to John: "I'd rather hire someone who is relentlessly curious than someone who is just naturally brilliant."
John to me: "Oh, yeah ... how come?"
Me to John: "Well, someone who's always asking questions is always going to be learning new things and improving herself. Someone who relies on intelligence is going to fall behind and .... oh, wait, ...."
John to me: "Yeah, I was just curious!"
He always gets us ...
But seriously, what do you look for in a new hire? Warren Buffet looks for (1) Intelligence, (2) Integrity, and (3) Passion for the type of work. I think curiosity goes to passion. Working with someone who's passionate about the work you're doing is a pleasure to deal with. Always engaged, always improving his/her skill set, and always surprising you.
"Commit to CANI! -- Contant And Never-ending Improvement."
- Tony Robbins
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**These are our opinions. We're not authorized, or willing, to express those of others.**