Know Before You Owe: New Mortgage Rules and Forms are making it easier for consumers to understand the process

TILA-RESPA Integrated Disclosure rule implementation

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Email updates about mortgage rule implementation

 http://www.consumerfinance.gov/regulatory-implementation/tila-respa/

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New consumer guide replaces settlement cost booklet

Your Home Loan Toolkit – now available in English & Spanish – is designed to be used in connection with the new Loan Estimate & Closing Disclosure forms. It will replace the current Settlement Cost booklet when the TILA-RESPA Integrated Disclosures go into effect.

RESOURCES TO HELP YOU COMPLY

TILA-RESPA Integrated Disclosure rule

Compliance guide: A plain-language guide to the new rules in a FAQ format which makes the content more accessible for industry constituents, especially smaller businesses with limited legal and compliance staff.

Guide to forms: Provides detailed, illustrated instructions on completing the Loan Estimate and Closing Disclosure.

Closing factsheet: An overview of the limited circumstances when changes to the loan require a new three-day review.

Disclosure timeline: Illustrates the process and timing of disclosures for a sample real estate purchase transaction.

Integrated loan disclosure forms & samples: Downloadable Loan Estimate and Closing Disclosure forms in both English & Spanish and samples for different loan types.

Videos: A series of webinars to address implementation of the new rule. Please note that registration is required to view the recordings. Topics include an an overview of the rule, frequently asked questions, loan estimate form,closing disclosure form and implementation challenges. Use the question index to find out which questions were answered and when during the webinar series.

Supervision and examination materials

Our Readiness Guide provides guidelines for institutions to evaluate their readiness and help them comply with the mortgage rule changes.

ADDITIONAL INFORMATION

Data standards

Freddie Mac and Fannie Mae have released a common industry dataset, called the Uniform Closing Dataset, which leverages and maps to Mortgage Industry Standards Maintenance Organization (MISMO) data standards, to support implementation of the TILA/RESPA Closing Disclosure form. MISMO is developing a corresponding mapping dataset for the Loan Estimate that will be available soon.

Integrated loan disclosure forms & samples

These are downloadable versions of the models and samples that were published in the rule.

Buyers & Sellers: Who Owns Your Mortgage?

TRULIA'S BLOG \ MONEY MATTERS

How to Protect Yourself When Your Mortgage Is Sold

By Andrea Murad | September 30, 2015

If your loan was sold to a new lender or servicer, that’s not necessarily a bad thing.

                  

Although you may have signed on with a certain lender when you bought your house, you may find that after a while, your mortgage statements start coming from a new company. While it can be unnerving to see this new name asking for payment, fear not! The practice of selling mortgages in the secondary mortgage market is very common.

In fact, the majority of mortgages are sold in the secondary market after they’re originated. Regardless of which company owns your loan, a loan is a loan — and what’s on your mortgage note hasn’t changed.

But just so you can rest easy, here are answers to common questions you may have about your mortgage changing hands.

Why would a lender sell my mortgage?

The adage that “it takes money to make money” holds true, especially for lenders. Lenders need capital to originate new mortgages, and most mortgages have 30-year terms. If a company were to wait for borrowers to pay off their loans, it would need an exorbitant amount of capital to fund new mortgages. So instead of waiting 20 to 30 years for a borrower to pay down a mortgage, most lenders sell the loans they originate to an investor, such as a government-sponsored enterprise (for example, Fannie Mae or Freddie Mac).

Home mortgages aside, banks and finance companies sell just about every loan they originate so they can raise money to make more loans. Auto loans, credit card loans, and student loans are all fair game to package into bonds that can be sold to both domestic and international investors. Without investors willing to buy these loans, banks and finance companies wouldn’t be able to lend you money from the get-go.

Is it legal for a lender to sell my loan?

Yes, it’s perfectly legal for a lender to perform a mortgage transfer, but not every lender sells every loan. Some lenders hold higher-balance nonconforming loans on their balance sheets; sometimes these same loans are sold to investors so that the lender can free up cash and originate more loans. It really depends, and borrowers cannot stipulate that their mortgage won’t be sold to another lender or that the servicer won’t ever change.

The Real Estate Settlement Procedures Act requires that a lender disclose plans to transfer servicing for your loan to another lender in the Mortgage Servicing Disclosure Statement. If you didn’t receive this document when you applied for your loan, your lender should have mailed it to you within three business days of your application.

How do I find out if my loan has been sold?

Lenders are required to notify borrowers within 30 days of the sale. This notice will include the name and contact information for the new owner of your loan, when your loan will be sold, and whether the sale will be included in public records.

Is the servicing sold too? Are the servicer and lender the same company?

Your lender and the servicer aren’t always the same company. A lender originates the loan and provides the capital for you to buy your new home or refinance your existing home, while the servicer handles the day-to-day maintenance of your loan — things such as processing and recalculating payments, managing escrow accounts, and beginning foreclosure proceedings.

Sometimes the servicer will remain the same after a loan is sold. If the servicer changes, you’ll receive notice of the new servicer that includes details on where to send payments and contact information for questions.

Will my payment change if my loan is sold?

Unless you have an adjustable-rate mortgage, no. Whether your loan rate is fixed or adjustable, your payment may also change if you pay your taxes and insurance through an escrow account and what’s due changes. All other loan terms will remain the same.

What if I send my payment to the wrong lender?

If your payment is already in the mail, you won’t be charged a late fee for mailing your check to your old lender. There’s a 60-day grace period after your mortgage is transferred.

What if I don’t receive any notices, and my servicer has changed?

For borrowers, the transition between lenders and servicers is usually pretty seamless, but that’s not to say mistakes don’t happen. When thousands of loans are transferred from one company to another, issues can arise. If your lender or servicer changed and you weren’t notified, then you can file a complaint online with the Consumer Financial Protection Bureau.

Borrowers should feel confident that they are protected if their loan is sold in the secondary mortgage market. The handoff to a new lender or servicer should be as painless as receiving a few letters in the mail, and being cognizant of where and when to send your payment each month.

- See more at: http://www.trulia.com/blog/how-to-protect-yourself-in-a-mortgage-transfer/?ecampaign=cnews&eurl=www.trulia.com%2Fblog%2Fhow-to-protect-yourself-in-a-mortgage-transfer%2F#sthash.tqmawez4.dpuf

Move This, Not That: 10 Items to Get Rid of Before Your Next Move

TIPS & ADVICE / STORY / BY NATALIE WISE ON 13 AUG 2015

Packing Lighter Can Make Your Next Move Simpler

When it comes to moving, deciding what to take with you — and what to leave behind — can be stressful. Spending a little time clearing out dead weight before the move will make settling into your new place much more freeing. Check these 10 areas of your home for items that aren’t worth the square footage in the moving van — or your new home.

1. Dine in

This may seem obvious, but food takes up a lot of space and often gets a bit lost in the moving shuffle. In the weeks before your move, eat anything that isn’t shelf-stable, brand-new or a specialty item. Don’t forget about the perishable foods in the fridge and freezer (steak for dinner, anyone?). Take a break and throw a pantry dinner party with friends who are helping you move.

2. Pass on low-quality furniture

Low-quality furniture, typically made of particle board, is very susceptible to being ripped and chipped in a move. Ask family and friends if they can use any of these pieces or bring them to your local donation center. Upgrade or replace when you get to your new home.

3. Clean closets

Anything old, stained or that no longer fits should go straight into the donation bin. Moving cross-country? Transitioning from a cold climate to Florida will allow you to shed even more weight as you let go of snowsuits and boots that won’t be of use in the Everglades. Donate to a local thrift store or have a garage sale to make extra cash.

4. Tame the bathroom cabinet

There is no sense moving 20 crusty nail polishes and every curling mousse you’ve ever tried and abandoned. Anything expired or unused lately should be tossed. Cull these and only keep your essentials, as anything else may spill in transit and many are flammable.

5. Make a pitcher of margaritas

While you’re throwing your pantry party, be sure to bring out the open bottles of alcohol. Chances are they’re in glass, making them a no-no for most moves, so you might as well enjoy them now.

6. Burn those candles

This may sound odd, but many moving companies won’t take candles. They’ll most likely melt and get misshapen anyway, so give these to friends or use them as décor at your clean-out party.

7. Donate excess kids’ toys

Toys take up a massive amount of space, even if they are lightweight. Anything that has been outgrown or unused should be donated or passed along to friends or family. Bigger items such as outdoor pools, sports equipment and bicycles should also be assessed.

8. Toss old linens

Sheets and towels are bulky to move, so anything that’s seen better days should be put in the donate pile. Choosing fresh sheets and towels after you’ve moved is a fun part of feeling settled in your new home.

9. Clear out garage clutter

This includes outdoor furniture, hoses, planters and trash cans. With garden items, it’s best to start new instead of moving a potentially invasive weed or insect species to a new area. Outdoor furniture often has glass, which is easily shattered, and flimsy outdoor fabric, which is easily torn in a move. Try selling these pieces and using the cash for a new set.

10. Hobby supplies

Excessive amounts of craft or hobby supplies are often not worth the space. Use this as a time to freshen things up and pare down your supply stash. Bonus? An excuse to buy new supplies in the future.

Once you’ve tamed these 10 areas, you should be able to breathe a little easier and pack a little lighter. You’ll be left with high-quality furniture, sentimental pieces and daily-use items, all things that help make a house a home.