TRID Guidelines: Facts for Home Buyers

TRID Facts for Home Buyers

Beginning October 3rd, a new set of government regulations became effective for all real estate transactions. At first glance, TRID, which stands for TILA / RESPA Integrated Disclosure Rule, seems overwhelmingly complicated. Here is a breakdown of a few fast facts that will help you understand how TRID affects you:

Why the change?

It may feel like a drag to jump through the newly designed hoops, but in fact the changes were implemented to protect you. TRID has even earned a slick nickname “Know Before You Owe.” In short, the changes mean that lenders can’t surprise you with their list of fees associated with your loan at closing. Instead, lenders are required to present an official document of fees at least three days prior to closing. This new protection means you won’t be tallying up what you owe with a pen in your hand as the clock ticks away at your closing. Instead, you have 72 hours to digest how your new mortgage–and its related fees–work.

New disclosures:

If this isn’t your first rodeo, and you’ve gone through the process of home buying before, you may remember the set of forms your lender presented to you; one after the initial loan approval, known as a Good Faith Estimate, and later, usually at closing, your breakdown of fees. Because of the TRID changes, you’ll now get that breakdown of fees sooner, and this new disclosure will look remarkably similar to what you already saw after your loan was approved. The only difference is this Closing Disclosure From will actually break down who is responsible for each fee; be it you, the seller, or a third party.

What’s the downside?

So it all sounds great, but what’s the catch? Because the new disclosures are time sensitive, and government regulated, if not presented properly by your loan officer the closing could be delayed. The good news is that loan officers face penalties and fees if that happens, which is an excellent motivation for your loan to be processed correctly the first time. If you’re unsure of where to turn, ask your real estate agent to recommend a loan officer; they will likely have many banks and loan officers that they trust, and in turn, you can trust too.

Is my Realtor affected? Your real estate agent will have to comply with any delays in closing, so more than ever they will want to work closely with you every step of the way: keeping lines of communications open and guiding you with answers to your questions. It’s also likely your agent has attended a TRID class or otherwise educated themselves, making them a great resource to you throughout the home buying process.

Kevin Burklund of Woods Bros Realty said, “With this huge change in federal regulations, buyers have to be attentive and responsive in order to close on time; it’s more important now than ever to have a Realtor involved to keep the transaction on track.”

Boucher to head up HomeServices Lending in Lincoln

Kristin Boucher
Kristin Boucher

Kristin Boucher (NMLSR ID 580477) has been promoted to Lincoln Branch Sales Manager for HomeServices Lending.

Boucher has 18 years of experience in real estate, title and mortgage, most recently as a Home Mortgage Consultant out of the HOME Real Estate Pine Lake office.

Originally from Simi Valley, CA, Boucher has been a Nebraska resident since 1999 and currently lives in Murdock. She and her husband Matt have twin boys, Austin and Jakob, who are almost 12 years old.

Boucher will office at 3910 South Street in Lincoln inside the Nebraska Land Title & Abstract office. She can be reached at (402) 441-3204, or Kristin.M.Boucher@HomeSvcLending.com. For more information about HomeServices Lending, visit www.hslne.com.

About HomeServices Lending, LLC

HomeServices Lending, LLC is the full-service mortgage lender under HomeServices of America, Inc., a Berkshire Hathaway affiliate, and is an affiliate of Wells Fargo Home Mortgage. HomeServices Lending is dedicated to serving the lending needs of home buyers, real estate professionals, builders and developers throughout the U.S. The company provides hundreds of mortgage programs, and its mortgage consultants are dedicated to serving each client’s unique financing needs.
All first mortgage products are provided by HomeServices Lending, LLC. HomeServices Lending, LLC may not be available in your area. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. Licensed by the Department of Corporations under the California Residential Mortgage Lending Act. Georgia Residential Mortgage License Number: 32253. Kansas Licensed Mortgage Company, License Number: SL.0026321. 333 South 7th St. 27th Floor Minneapolis, MN 55402 All Rights Reserved. NMLSR ID 490683 Equal Housing Lender.

CFPB Tips for Homebuyers

From the Consumer Financial Protection Bureau (CFPB)

Make the most of the new CFPB mortgage rules

Beginning January 2014, new rules take effect that are designed to achieve a common sense goal: When it comes to shopping for a home mortgage, it should be easy for consumers to find the information they need to make good decisions. The CFPB rules simply require lenders to document a borrower’s ability to repay the loan and follow other common sense rules to protect consumers.

The CFPB’s rules ensure that anyone being paid to help you find a mortgage treats you fairly at key points in the process. The rules are aimed at empowering you to shop for loans to buy and own a home with more confidence.

How the CFPB’s new rules help if you are shopping for a home loan

Tip #1: Only you can decide how much you are comfortable paying for your mortgage.

The new mortgage rules will make the market safer and easier to understand. For example, lenders now have to make a good faith effort to determine if you have the ability to repay your loan. They can meet this standard by making a loan known as a “Qualified Mortgage” that doesn’t have high fees and certain risky features like negative amortization or interest-only periods. But in the end, only you can decide how much you are comfortable paying for a mortgage.

Tip #2: Use your market information.

You will get a copy of any appraisal or valuation at least three business days before you go to closing. Appraisals can provide you an estimate of what a home is worth. You may also obtain your own independent appraisal. If the appraisal is well below the price you offered to pay, you may want to consider renegotiating the price or reviewing the appraiser’s work carefully to understand how the appraiser arrived at the estimated value.

Tip #3: Get reliable help.

Any company that is paid to help you find or get a mortgage must train its agents, brokers and loan originators and make sure they have been through a background check. With limited exceptions, the people you hire to help you find a mortgage should be licensed or registered at the state or federal level. Ask your loan originator about their credentials.

Tip #4: Watch those fees.

New CFPB mortgage rules limit the fees a lender can charge and still make what is called a Qualified Mortgage. In general, qualified mortgages do not have particularly risky features, and the points and fees are less than 3% of the loan amount, though fees can be higher for loans of less than $100,000. These rules do not require lenders to cap fees. You still have to decide for yourself whether it’s a good idea to pay high fees to get a loan. And be sure to review your closing statement carefully to make sure there are no fees there you did not agree to pay.

Fore more information, visit the CFPB online at www.consumerfinance.gov.

Federal Housing Administration loan changes now in effect

FHA-Approved-Lender-SealIf you’re a buyer utilizing an FHA loan and you’re not already under contract, your FHA loan is now more expensive. How? Because the mortgage insurance is now scheduled to last for the life of your loan.

It used to be that your mortgage insurance would drop off (you’d probably have to request that it be removed) once you achieved 22% equity in your house. That’s no longer casinos francais en ligne the case, as that mortgage insurance is now in place until you pay off the entire mortgage.

If you were looking at an FHA loan, you might consider a NIFA loan – as of this writing (June 6), the rate is considerably lower than the current FHA rate. There are some income guidelines and a handful of other rules you need to know, but the NIFA loan will make a significant difference in your monthly payment. It’s worth exploring – talk to your lender about it and see if it makes sense for you.

“As A Home Seller, Why Should You Care About Involving A LENDER In The Home Selling Equation?”

From KCM Blog:

One thing many real estate agents have learned is the importance of having a team of professionals to facilitate a smooth transaction. Having a lending expert on the team, can make available the following services to you…all for FREE:

  • They stand ready to screen all potential buyers. Today’s lending landscape is a rapidly changing environment. Programs and requirements are changing regularly. A good loan officer should have a reputation for being on top of current guidelines and finding the best solutions for prospective clients. You need to know that when you accept an offer, the buyer can actually close.
  • Financing is an important component to getting a home sold. Whether it’s marketing flyers, carrying costs, unique mortgage strategies (such as buy-downs and Sales Concessions) or even loan programs to differentiate your home (ex. loans that can incorporate monies for the purchase and renovation of a home), the best loan officers take pride in their ability to help increase the number of people for whom your home could be a fit. More prospects equals higher sales prices.
  • In so far as a professional loan officer is seen as an educator, they would want to offer you the chance to tune into some of their online seminars (called webinars) and videos. As an example, some lenders have webinars with topics ranging from “How Lenders Look At A Mortgage Application” to “Renovation Lending” to “Getting Your Optimal Credit Score”, as well as videos that can fully explain your Good Faith Estimate. They are constantly striving to be a resource for everyone they come in contact with.
  • Lastly, your loan officer knows that most home sellers become home buyers. Not only will they run your credit and analyze your income and assets, but they will also pre-approve you for your next mortgage, typically free of charge.

Both your agent and the loan officer on their team are committed to the highest level of advice and integrity. Reach out to them for any questions you may have.

About The Author
Dean Hartman is the Regional Vice President of Benchmark Lending and a 25 year veteran of the mortgage banking industry. He has achieved the designation of Certified Mortgage Planning Specialist, and also specializes in sales leadership, seminar presenting, and team building. Check out Dean’s Facebook Page, DreamTeamTV.

What in the world is a QRM …

What in the world is a QRM and why does it matter to the typical home buyer?

With the 2010 Dodd – Frank bill the U.S. Congress attempted to establish a vehicle to require mortgage generating banks to retain a portion of the securitized loans (loans that are bundled together and sold to investors) that they generate. Simplistically speaking the theory is that if you require the banks to retain say 5% of the loans that they securitize they will be more diligent in assuring that they originate quality loans to quality borrowers thus reducing the likelihood of default. By Congress’s definition exempt from this 5% “skin in the game” rule are FHA loans and Qualified Residential Mortgages or QRMs the definition of which was left up to the country’s six banking regulators.

Discussion to date suggests that a QRM would be defined as a loan based on 80% loan to value, or 20% down-payment, made to a borrower with a minimum FICO score of 690 whose ratio of income to mortgage payment and overall debt is no more than 28% and 36% respectively. While on the surface one might accept that that does in fact describe a qualified borrower and loan the concern is what such a definition does to the mortgage market as a whole.

Banks that are forced to assume additional risk and maintain additional reserves will do what banks always do and that is they will pass the cost of the risk on to the borrower in the form of higher rates and expenses or will raise the bar for qualifying to the point where the only real options are as a QRM or a FHA borrower. Playing out this scenario one can easily project that FHA down payment and qualification requirements would necessarily be raised to manage an already larger than ever intended market share.

With available statistics suggesting that 80+% of first time home buyers put down less than 20% this scenario does not bode well for maintaining the affordability factor so important in that market segment and as we well know, as goes the first time buyers so goes the market. The National Association of Realtors has and is following these developments very carefully and is advising both the regulatory agencies and Congress itself as to what it is sees as the impact of such actions. We will keep you posted…

HomeServices Lending Receives Lender Honors from USDA Rural Development

HSL_RD

The Lincoln branch of HomeServices Lending, LLC was recognized as one of the Top Lenders in Fiscal Year 2010 for USDA Rural Development’s guaranteed rural housing (GRH) loan program. HomeServices Lending provided more than $1.7 million in home loans through this program, which fostered rural homeownership in the state, said Maxine Moul, Nebraska State Director for USDA Rural Development in making the presentation to the lender.

The GRH loan program continues to be extremely successful in Nebraska. Seventy-seven approved lenders participated in Fiscal Year 2010 providing nearly $90.4 million, and assisting 1,020 rural Nebraska households to achieve homeownership. Demand for the USDA Guaranteed Rural Housing homeownership program continued to be strong in Fiscal Year 2010.

Moul said, “We appreciate our partners, the Nebraska-approved lenders, who make this program such a success. We anticipate another active year and we look forward to helping more rural Nebraskans to achieve the dream of homeownership. I wish to thank HomeServices Lending for their dedication in using the program.”

With guaranteed financing, private lending institutions provide the loans which are guaranteed by the federal government. The program features no down payment to eligible income households and no maximum mortgage limits. Dwellings must be located in a rural community with a population of up to 20,000, and including Norfolk and Columbus.

Existing guaranteed or direct loan borrowers may refinance their home loans under the GRH loan program to obtain a possible lower interest rate.

For additional information visit www.rurdev.usda.gov/ne.

About HomeServices Lending, LLC

HomeServices Lending, LLC is the joint venture mortgage bank under HomeServices of America, Inc., a Berkshire Hathaway affiliate, and an affiliate of Wells Fargo Home Mortgage. HomeServices Lending is dedicated to serving the lending needs of home buyers, real estate professionals, builders and developers throughout the U.S. The company provides hundreds of mortgage programs, and its mortgage consultants are dedicated to serving each client’s unique financing needs.
All first mortgage products are provided by Homeservices Lending, LLC Series A. Homeservices Lending, LLC Series A may not be available in your area. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. ©2010 Homeservices Lending, LLC Series A. All Rights Reserved. An Equal Housing Lender.

Nebraska to offer low-interest loans for green homes

From the Sioux City Journal:

LINCOLN, Neb. (AP) – The Nebraska Energy Office is offering residents low-interest loans to go green when building a house.

The office is offering 2.5 percent loans through eligible Nebraska lenders for the construction of single family, highly energy-efficient homes. The home must meet or exceed the state’s energy code by 30 percent to be eligible.

Energy Star 5 Star Plus homes typically feature higher levels of properly-installed insulation, high-performance windows, tight construction and ducts, efficient heating and cooling equipment and Energy Star appliances, lighting and water heaters.

The first step to building an Energy Star 5 Plus Star home is to have a certified home energy rater complete a rating of the construction plans provided by the designer and builder.

___

On the Net:

Nebraska Energy Efficient Housing Loans: http://www.neo.ne.gov/loan/index.html.

Certified Home Energy Raters: http://resnet.us

Limited time pricing specials from HomeServices Lending

HSLWaiting to buy a home?

Our new purchase loan pricing special may get you off the fence

 

When you work with us, you may benefit from our limited time pricing specials with:

  • Lower interest rates on fixed rate purchase mortgages
  • Loan amounts up to $729,750(1) in qualified areas
  • Varied amortization term options
  • Relocation loans eligible

 

Why wait when you could be taking action?
From historically low interest rates to numerous homes for sale to tax credits for both move-up and first-time buyers(2), we have financing programs to help accommodate a number of budgets and goals.

 

Contact us for a PriorityBuyer® preapproval

1. Loan limits are based on the median house price for homes in a specific area. Not all areas allow loan amounts up to the indicated maximum loan amount. Conforming loans up to these temporary loan amounts must close and fund by December 31, 2010.
 
2. Eligible on any home purchase where a sales contract is signed by April 30, 2010 and closes by June 30, 2010. Tax credit does not need to be repaid unless the home is sold or not used as the owner’s primary residence during the first three years after purchase. Please consult a tax advisor.
 
3. A PriorityBuyer® preapproval is based on our preliminary review of credit information only and is not a commitment to lend. We will be able to offer a loan commitment upon verification of application information, satisfying all underwriting requirements and conditions, and providing an acceptable property, appraisal and title report. Not available on nonconforming products.
 
Information is for real estate professionals only and is not intended for consumer distribution. This information is accurate as of the date of printing.
 
All first mortgage products are provided by HomeServices Lending, LLC Series A. HomeServices Lending, LLC Series A may not be available in your area. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. ©2010 HomeServices Lending, LLC Series A. All Rights Reserved. An Equal Housing Lender. Woods Bros Realty is an affiliate of HomeServices Lending. Please speak to your real estate agent for more information on this affiliation.
#162907 02/10 – 05/10
_Reliance Setup Office

_Reliance Setup Office


, NE
Office:

Woods Bros Realty

Office Group


© 2022

© 2021 Woods Bros Realty, a Berkshire Hathaway Affiliate. Equal Housing Opportunity.