Should you be disclosing Closing Disclosures without all the contact information?
And by "contact information," I mean all the stuff on page 5 related to the lender, real estate brokers, and settlement agents.
You know, it sure did prove tougher than anticipated to collect license numbers, e-mail addresses, and even names of settlement agents and real estate brokers so we could disclose that information on the CD.
But how strictly should you be following this requirement? No big deal if you don't get it? Maybe it's okay if you normally don't get it on the initial CD but always get it on a revised CD?
So I'm sure by now you're aware that the CFPB's long-awaited update to
TRID has been released. If you're living under a rock, you can find the release here. Keep in mind, this is only a proposed rule. So while many things included are "clarifications" (meaning they help immediately), there are a number of new changes that won't affect us for months.
"What if we don't have the contact information when we need to disclose?"
Well at this point, the battle's already lost. Of course, you don't want to delay a closing because you're waiting for contact information. And certainly it is commonplace to have contact information missing on an initial CD and then to ensure the correct contact information is included on a final CD at closing. But, the point I want to get across is that we shouldn't let it get to this point - we should be making an effort to get this information sooner.
Rationale. We're required to disclose contact information to help borrowers contact these critical parties in the 3-day waiting period after receiving the CD. Our adding this only on a later revised CD is better than nothing, but doesn't accomplish the goal the Rule is intending to accomplish here.
We're required to use the "best information reasonably available" to disclose these items on the CD. This standard requires us to exercise "due diligence in obtaining the information."
If you tuned in to the CFPB's April 12, 2016 webinar, they explained that
leaving property taxes blank on the LE would not satisfy the "best information reasonably available" standard. And that's only on the LE! I'm pretty sure regulators are going to expect we were able to track down these people sometime before the CD has to be disclosed. And I'm pretty sure regulators are going to think it's easier for us to get contact information than precise property tax estimates. Indeed, the TRID Preamble actually says, "[T]he [CFPB] does not believe it is particularly burdensome for a creditor to obtain the name and contact information for the real estate brokers in the transaction. The creditor could obtain such information from the real estate purchase and sale contract or from the consumer directly." (p. 1177).
Just my two cents.
In Other News:
Tim Tebow taking a shot at major league baseball? ... maybe there's hope for you yet, Justin (although I think your mortgage banking future looks very bright)
"7 Things Buyers Should Never Overlook At Open Houses" -interesting article to pass along to your borrowers
Hey don't forget about all the mortgage servicing regulations that took effect recently. Read more about them here.
I'm a big believer that you need both competence and compassion to be considered good at any job. Imagine an LO with the best rates backed by the fastest origination team who doesn't take a moment to sympathize with a borrower whose house is worth $50,000 less than they expected. Then again, imagine the friendliest carpenter ever who orders the wrong size doors and windows. Neither one can be considered very good at their job, in my opinion.
"People should pursue what they're
passionate about. That will make them
happier than pretty much anything else."
- Elon Musk
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