Loan Estimate and Closing Disclosure

For all other charges, creditors are not permitted to charge consumers more than the amount disclosed on the Loan Estimate zero tolerance charges:

Fees paid to the creditor, mortgage broker, or an affiliate of either. Transfer taxes. Charges the consumer cannot shop for

if a lender provides a consumer with a written estimate of terms or costs specific to that consumer before the consumer receives the Loan Estimate, it must clearly and conspicuously state at the top of the front, first page of the written estimate

"Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing the loan."

The following are events that would require a new Loan Estimate disclosure.

1 - Settlement Costs Change beyond the established tolerances 2 - Terms of the loan change 3 - Borrower requests a change in the loan terms 4 - Original interest rate lock expires 5 - An interest rate change 6 - For new construction if the construction period is longer than 60 days

Charges for third-party services and recording fees paid by or imposed on the consumer are grouped together and subject to a _____% cumulative tolerance. This means the creditor may charge the consumer more than the amount disclosed on the Loan Estimate for any of these charges so long as the total sum of the charges added together does not exceed the sum of all such charges disclosed on the Loan Estimate by more than _____%.

10%

if your payment is more than____ days late, we will charge a late fee of ___% of the monthly principal and interest payment

15, 5

Creditors are required maintain copies of the Partial Payment disclosure for _____

2years

Anytime there is a revised LE, it must be provided within ______business days of the event that triggered the revised disclosure. T

3

If it is mailed or delivered electronically, the consumer is considered to have received the Closing Disclosure _____business days after it is delivered or placed in the mail.

3

Lender must retain a copy of the Loan Estimate for a minimum of ______years from application.

3

The Real Estate Settlement Procedures Act (RESPA) and the Truth-in-Lending Act (TILA) require that the Loan Estimate for a transaction be supplied to the borrower within _______ business days of the taking of the initial loan application.

3

The creditor is generally required to ensure that the consumer receives the Closing Disclosure no later than ____ business days before consummation of the loan.

3

The settlement agent must deliver or place in the mail a corrected Closing Disclosure not later than ______ after receiving information sufficient to establish that such an event has occurred.

30 calendar days

Creditors must provide a corrected Closing Disclosure if an event in connection with the settlement occurs during the __________day period after consummation that causes the Closing Disclosure to become inaccurate and results in a change to an amount paid by the consumer from what was previously disclosed.

3o calendar day

Creditors are required to maintain a copy of the Closing Disclosure for ______years.

5

Creditors also must provide a revised Closing Disclosure to correct non- numerical clerical errors and document refunds for tolerance violations no later than ______ after consummation.

60 calendar days

If the creditor cures a tolerance violation by providing a refund to the consumer, the creditor must deliver or place in the mail a corrected Closing Disclosure that reflects the refund no later than ____after consummation

60 calendar days

A good way to remember the elements which constitute a loan application is to use the following acronym - BLAMES.

B - Borrower Name L - Loan Amount Requested A - Address of Property M - Monthly Income of Borrower E - Estimated Value of Property S - Social Security Number

The three-business-day waiting period requirement applies to a corrected Closing Disclosure that is provided when there are:

Changes to the loan's APR Changes to the loan product The addition of a prepayment penalty

The former ____ and ______were combined into a new form, the Loan Estimate.

Good Faith Estimate (GFE) and the initial Truth-in-Lending disclosure (initial TIL)

The Loan Estimate form applies to most all closed-end consumer credit transactions secured by real property, but certain transactions are not required to use the Loan Estimate form:

Home Equity Line of Credit (HELOC) Reverse Mortgage Chattel-dwelling loans, such as loans secured by a mobile home

the list must:

Identify at least one available settlement service provider for each service. State that the consumer may choose a different provider of that service.

After the applicant receives the LE there must also be an ________ given to the lender by the applicant before any fees may be imposed.

Intent to proceed

Finance Charge

Interest for the life of the loan + Private Mortgage Insurance for the life of the loan + Any Prepaid Finance Charges (above) These items are totaled as a lump sum which the borrower will be expected to pay over the life of the loan.

Amount Financed--- in LE

Loan Amount less - Any Prepaid Finance Charges (above)

Prepaid Finance Charges are certain charges made in connection with the loan and which must be paid upon the close of the loan. These charges must be paid by the borrower.

Origination Fees paid by borrower Discount paid by borrower Interest on New Loan from date of closing to end of month Prepaid Mortgage Insurance Premium Mortgage Insurance Escrow Tax Service Fee

when is the LE disclosure not required?

The only exception to the required disclosure is if the borrower withdraws the application or credit is denied, within three business days from application, a LE disclosure is then not required.

In transactions that are not rescindable, the Closing Disclosure may be provided to

any consumer with primary liability on the obligation.

your lender is required to give you a copy of your appraisal at no additional cost when?

at least 3 business days before closing

In rescindable transactions, the Closing Disclosure must be given to

each consumer who has the right to rescind under TILA,

If the consumer is permitted to shop for a settlement service, the creditor must provide the consumer with a written list of services for which the consumer can shop. the written list of provider must be given to consumer when?

it must be provided to the consumer no later than three business days after the creditor receives the consumer's application—

what are some elements that the LE form contains?

loan terms, projected payments, cash to close ,services you can or cannot shop for

the new Loan Estimate form is designed to

provide disclosures that will be helpful to consumers in understanding the key features, costs, and risks of the mortgage loan for which they are applying,

Loan Estimate Form Purpose

represents to the borrower the estimated costs relative to closing the loan transaction.

For changes other than to the APR, loan product, or the addition of a prepayment penalty, the creditor is not required to provide the consumer with the revised Closing Disclosure until

the day of consummation

finance charge

the dollar amount t the loan will cost you

amount financed

the loan amount available after paying the finance charge

total interests percentage TIP

the total amount of interest that you will pay over the loan term as a % of your loan amount

when have you taken a loan application and LE is required?

when you have received all BLAMES

these charges are:

x Recording fees Charges for third-party service

can estimated escrow increase over time?

yes