TILA-RESPA: New Disclosure Statement and new Loan Estimate Forms

TILA-RESPA Integrated Disclosure rule implementation

Top of Form

Email updates about mortgage rule implementation

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

Bottom of Form

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.

HOA's -- Pros and Cons: It's all about how well it's managed.

5 Pros and 5 Cons of Homeowners' Associations

RISMEDIA, Wednesday, November 04, 2015— Across the U.S., homeowners’ associations are on the ascent. According to the U.S. Census Bureau, 59 percent of newly constructed homes in 2014 were part of a homeowners’ association. That’s up from 46 percent in 2009.

              

So, what’s the draw of homeowners’ associations? By the same token, what are the drawbacks?

“A well-run and managed HOA can be a blessing, and a poorly managed HOA can be a curse,” says Bruce Ailion, a broker in Woodstock, Ga. Here, real estate agents and homeowners weigh in on the blessings and the curses of homeowners’ associations (HOAs).

Pro No. 1: Your neighborhood will look good.

Generally, an HOA establishes rules to ensure the neighborhood looks sharp, says Brad Pauly, real estate owner and broker in Austin, Texas. These include strict guidelines about keeping lawns manicured, restrictions on parking boats and other large vehicles on the street, and limitations on exterior paint colors.

“This type of oversight eliminates issues with one or two properties weighing down all property values due to an unpleasant exterior,” says John Lyons, a broker in Chicago.

Pro No. 2: You’ll enjoy access to amenities.

An HOA usually offers community amenities such as a pool, a fitness center, parks, children’s play areas and security gates, Pauly says.

Pro No. 3: Your maintenance costs will be shared.

HOA dues are earmarked for maintenance of shared spaces, according to Lyons. This includes community lawn care (but not for your own yard), community snow removal (but not for your own property) and upkeep of common areas like the pool or the fitness center.

Pro No. 4: You’ve got a built-in mediator.

Involved in a tiff with your neighbor over that big oak tree that’s losing limbs? You can settle some confrontations with your neighbors by taking your grievances to the HOA’s board or management company, Lyons says.

Pro No. 5: You can get to know your neighbors.

Gina Estrada, who lives in a gated HOA community in Clovis, Calif., says that if you’re elected to serve on the HOA board or are otherwise active in the association, you’ll become better acquainted with your neighbors. Heck, you might even make some new friends. “I believe we should know our surroundings, including the people in them,” Estrada says.

Con No. 1: You’ll fork over HOA dues.

When buying a home in a community with an HOA, you’ve got to add HOA dues to your budget. The dues vary, but typically run in the hundreds of dollars per month.

Con No. 2: Your hands will be (somewhat) tied.

If someone buys a home in an HOA community and wants to make changes to the property, such as the addition of an enclosed patio, it normally must be approved by the HOA’s board. “It’s possible that an HOA could prevent certain updates on a home,” Pauly says.

Con No. 3: You might be hampered by an HOA’s financial woes.

If an HOA is facing financial problems or is ensnared in a lawsuit, it could harm your ability to obtain a loan for a home and could hurt sale prices of homes in the community, Pauly says.

Con No. 4: You’ll lose some of your freedom.

When you live in a community governed by a HOA, you’ll have to follow its rules, even if you think they’re ridiculous, Lyons says.

“You do, however, have the option of petitioning the homeowners’ association to change any rule you don’t agree with. But if you lose, you will have to live with it,” Lyons says.

Con No. 5: You might be the victim of a “rogue” board member.

Estrada says her HOA elected a “rogue” homeowner to the board who decided to flaunt the rules and do whatever he wanted. For instance, Estrada says, the rogue board member thought the community needed speed bumps to slow down speeding drivers, so he had them installed. That move caused a neighborhood uproar. The process to take out the speed bumps and remove the rogue homeowner from the board cost several thousand dollars, including legal fees, she says.

“When there is one rogue homeowner, it can really mess things up,” Estrada says.

Problems also arise when homeowners stop attending HOA meetings, Estrada says, and it’s left to a small group of people to make decisions.

“The board of directors is made up of your neighbors. If you want to have a say in how things go, you have to serve on the board,” says Ailion.

John Egan is editor in chief at LawnStarter, which connects homeowners with lawn care professionals.

This post was originally published on RISMedia's blog, Housecall. 

Perfect City for Your Vacation Home? Try Ocean City MD - We Have It All :)

How to Choose the Perfect City for Your Vacation Home

       

RISMEDIA, Thursday, October 29, 2015— Purchasing a vacation home is a great way to ensure that you always have a place to escape, without worrying about crammed hotel rooms and the inconvenience of living out of a suitcase for a week. When you own a vacation home, you can pack and leave at your convenience, because you always have a home away from home ready for you to utilize. If buying a vacation home appeals to you, you will need to choose the right location to ensure that the home remains a valuable, welcome part of your family. Here are some factors to consider as you make the decision.

Convenience to Your Home

First, determine if the location is convenient enough to make a vacation home appealing. How close is the vacation destination to your home? While it is great to "get away," the reality is that you may not wish to fly every time the opportunity to go on vacation arises. Especially with the rising cost of airline tickets, you may wish to choose a location within a short drive of your home.

Of course, sometimes driving is not an option. If you long for the convenience of a tropical retreat, but you live in the mountains of North Dakota, then go ahead and purchase somewhere tropical. However, before you do, check your local airport to ensure that regular flights are available.

Ongoing Appeal

Your vacation home is an investment that you will use year after year. Before you buy, make sure the area has staying power for your family. You need to buy in an area where your family will want to go annually for vacation. No matter how appealing an area may be the first two or three times you visit, you are investing in years of vacation. Is there really enough for your family to do to be interested long term?

The answer to this question is going to depend largely on your family's vacation style. If you are a lounge-on-the-beach-and-do-nothing type of vacationer, then a cabin on the beach in a remote area is ideal. If you like to see sights and do activities, then you will want to ensure that the city or town nearby has plenty to keep you interested — or even that the vacation home is located near a major amusement park or big city.

Potential Rental Income

Another consideration is what you will do with your vacation home when you are not using it. Do you want to rent out your property to earn some income when you are not using it? While the majority of vacation homeowners do not choose to rent out their property, if you think you may want this option, you will need to buy in a popular destination where vacationing is common. Consider shopping near the mountains, ocean, a lake or a river.

Potential Investment Value

Vacation homes are, at their most basic level, an investment. Evaluate the location to determine if it will be a wise investment with growing value.

In 2014, the number of vacation home sales rose by 57 percent, which is a peak since 2006, according to the National Association of REALTORS®. The vacation-home market accounted for a full 21 percent of the homes sold that year as well. This means there is currently a strong market for vacation properties.

Yet that does not mean a strong market will remain for your vacation property. For that information, you will need to research the area where you are buying with the help of a skilled real estate agent. Choose an area where sales prices are on the way up and where a continuing demand for real estate is projected in the coming years.

Family Interest

Finally, find out what your family thinks. Do they picture themselves vacationing with you, annually, in the same spot? Does the city have enough to appeal to them as well as you? Remember when buying a vacation home you are purchasing your family's memories for years to come. Make sure those memories are tied to a location everyone loves.

With a vacation home, you can build the memories that your family will cherish for a lifetime, and you will also be able to invest in your future financial security. Choose your location wisely, and you will find a vacation home is a welcome addition to your family.

This article was originally published on RISMedia's blog, Housecall. Check the blog daily for more winning real estate tips and trends for you and your clients.

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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

Top of Form

Email updates about mortgage rule implementation

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

Bottom of Form

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.

Renovate Rather than Move? 6 Ways to Finance a Home Improvement

6 Ways to Finance a Renovation

If you’re planning to take on a home improvement project, you’re in good company. A recent report by the Joint Center of Housing Studies at Harvard University predicts that the home improvement industry is expected to post record-level spending this year. As you prepare for your renovation, it’s important to review your financing options based on the size of the project, your intended repayment plan and whether you plan to use a contractor or do it yourself. Some financing options to consider:

Home Equity Line of Credit (HELOC)

A HELOC can provide ongoing access to funds using the equity in your home, which typically results in lower interest rates than unsecured credit. This type of credit may also provide you potential tax benefits. Consult your tax advisor regarding the deductibility of interest.

Mortgages with Built-In Renovation Financing

These loans help homeowners complete renovations with a loan amount that is based on an appraiser’s estimate of what the property value will be with completed improvements. This is also an option for aspiring homeowners who purchase properties that need repair. Whether a home purchase or a refinance, this option finances the renovations and mortgage in one loan.

Cash-Out Refinance Mortgages

A cash-out refinance replaces your current mortgage with a new and larger mortgage that pays off your current balance and allows you to use the equity in your home to provide additional funds for other purposes.

Credit Card

Credit cards can be used for large or small purchases and may earn rewards, which can add up to significant benefits when you’re making big home improvement purchases. However, credit cards often have higher interest rates than other loan or credit options, which should be taken into consideration.

Personal Loans and Lines of Credit

These personal credit options typically offer quick credit decisions and access to funds in a day. Lines of credit provide ongoing access to funds.

Savings

If you have a do-it-yourself project or a small renovation, accessing your savings might be an option. By paying cash, there is faster access to funds and nothing to repay.

Your bank may not be the best source for what color to paint your room or which walls to move, but it can help you identify your financial options. Each option has its associated benefits and considerations, and your bank can provide valuable information to help you make informed decisions about which options are right for you.

Reprinted with permission from RISMedia. ©2015. All rights reserved.

Happy Halloween --- Pair Your Perfect Wine with Your Halloween Candy. Enjoy & Be Safe!

This App Will Help You Find the Perfect Wine to Pair With Your Halloween Candy

 Vivino's new guide turns trick-or-treating into an epicurean event 

By Robert Klara       October 21, 2015, 4:29 PM EDT

Oenophiles with a sweet tooth should find the Candy and Wine Match Maker useful. 

Photo Illustration: Dianna McDougall; Source: Getty Images

Kids are the primary collectors of Halloween candy, but everyone knows it's the adults who determine how the sweets are purchased, distributed and consumed. According to the National Confectioners Association, 84 percent of adults will hand out candy at the front door this Halloween, and 41 percent of them will munch on some while they wait for trick-or-treaters. A whopping 90 percent of adults admit to pilfering their own kids' Halloween candy and, of course, it's adults who'll drop the $2.1 billion to buy treats in the first place.

Yes, adults do a lot of things with Halloween candy, but here's one thing they never seem to do: look for a decent pinot grigio or chardonnay to pair it with.

Well, now they can: Vivino, the popular app for wine enthusiasts, has just released its second annual Candy and Wine Match Maker (see chart below), an easy guide for pairing Halloween candy with the perfect vintage.

"Halloween is so focused on kids, but there are parents out there. And I'm sure that some of them wouldn't mind having a glass of wine," Vivino's vp of marketing Stephen Favrot told Adweek. "This is a perfect excuse for them."

Billed as a "Halloween survival guide for adults," Vivino's chart lists 14 popular Halloween candies in the left column (Tootsie Rolls, M&Ms, Skittles—all the heavy hitters are there.) Users can then follow leader lines to a variety of wines organized by category.

For example, the light, sweet and crispy flavor profile of a Kit Kat bar would pair nicely with medium reds like a zinfandel or a Grenache. Kit Kats also go well with sparkling wines—try a Champagne, prosecco or sparkling rose.

As you might imagine, producing such a comprehensive chart took enormous dedication. "We ate a fair share of candy," Favrot said. Basically, the Vivino tasters looked for the same flavor notes found in main-dish entrées and matched them using their experienced palates. The house staff then checked its results with some handpicked oenophiles in its user base of 11.4 million.

Because Vivino's app gives crowd-sourced advice on buying wine, its pairing guide does not mention brands; the app created its Halloween candy chart solely to spotlight its expertise. "We let the user pick what brand he wants," Favrot said, "We give them the guidelines."

Tart-flavored candies proved especially hard to match. "Some of the Starburst flavors?" Favrot said. "Man, that was tough—and Sour Patch Kids, too."

Sour Patch Kids doesn't appear on the pairing list, in fact. But Starburst can be safely washed down with a nice Moscato or Riesling.