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TILA-RESPA Integrated Disclosure – TRID Overview & Readiness In this presentation, we will cover the following Loan Estimate (LE) Intent to Proceed Tolerances Change of Circumstance Closing Disclosure (CD)

TILA-RESPA Integrated Disclosure – TRID The Loan Estimate (LE) EA Partner Advantage YOU control the Loan Estimate!

TILA-RESPA Integrated Disclosure – TRID The Loan Estimate (LE) The LE… Replaces the GFE and initial TIL TRID is effective with applications taken on or after October 3 rd

TILA-RESPA Integrated Disclosure – TRID Delivery and Timing The LE must be provided to the borrower in person or placed in the mail (either USPS or via ) within 3 business days of receipt of application EA defines a “business day” as Monday through Friday, excluding Saturdays, Sundays, and federal holidays You should contact your settlement agent as soon as possible after having an application, to gather an estimate of fees to properly disclose the LE. You may have to take a new application if the LE is improperly disclosed

TILA-RESPA Integrated Disclosure – TRID Application Definition Application is defined as: Borrower name SSN Income (supporting documentation is not required) Property address Estimate of property value (an appraisal is not required) Loan amount

TILA-RESPA Integrated Disclosure – TRID When and What Fees Can I Charge the Borrower? Credit report (this is the only bona fide fee that can be charged to the borrower prior to the intent to proceed) The borrower cannot be charged for any fees until the borrower has indicated an intent to proceed with the transaction The loan originator may not order and pay for an appraisal and later collect payment from the borrower at the time of closing. This is considered imposing a fee on the borrower prior to them indicating an intent to proceed You cannot collect any information that may be used to collect a payment from the borrower prior to the borrower’s intent to proceed being received No post-dated checks, no credit card numbers on file

TILA-RESPA Integrated Disclosure – TRID Intent to Proceed The borrower has 10 business days from receipt of the LE to indicate their intent to proceed. The borrower(s) can indicate intent by phone, , or in writing: Written proof of the borrower’s intent to proceed can be demonstrated with either a processor certification/attestation or written proof provided by the borrower to the loan originator

TILA-RESPA Integrated Disclosure – TRID How to Count the 10 Day Intent to Proceed Requirement The 10 business days will be counted as such: If the LE is provided to the borrower in person, the 10 days begin that day If LE was delivered priority overnight and the borrower signs receipt of delivery, the 10 days begin that day If the LE is delivered via and the borrower acknowledges via e-signature, the 10 days begin that day If the LE is delivered via or USPS mail and the borrower does not provide confirmation of receipt as listed above, the 10 days begin after 3 days have passed

TILA-RESPA Integrated Disclosure – TRID LE Page One General information Date, address, rate lock, etc. Loan terms table Loan amount, interest rate, monthly P&I Projected payments table P&I, MI, estimated monthly payment Costs at Closing table

TILA-RESPA Integrated Disclosure – TRID LE Page Two Loan costs & other costs An estimated itemization Calculating cash to close Shows how amount was calculated

TILA-RESPA Integrated Disclosure – TRID LE Page Three Contact information Comparisons table Shows how amount was calculated Total Interest Payment (TIP) Replaces the Total Payments from the initial TIL Other considerations Signature statement Acknowledging receipt does not equal intent to proceed

TILA-RESPA Integrated Disclosure – TRID Fees Disclosed on the LE Fees must be rounded to the nearest whole dollar amount (e.g. a $13.75 charge will be rounded to $14.00) Fees must be listed alphabetically and conform to industry standard naming conventions. Calyx Point and Encompass will automatically do this

TILA-RESPA Integrated Disclosure – TRID Tolerances Zero Tolerance Not permitted to charge borrower more than what is listed on the LE unless there is a valid change of circumstance Includes: Fees paid to the lender, mortgage broker, or an affiliate of either Fees paid to an unaffiliated third-party if the lender/broker did not permit the borrower to shop for a third-party service provider for a settlement service or Transfer taxes

TILA-RESPA Integrated Disclosure – TRID Change in Circumstance Valid change in circumstance Loan Program Change APR increase by more than.125 Rate Lock In the event of a valid Change of Circumstance, the LE must be re- disclosed within 3 business days and an additional 3 day waiting period occurs (excluding Sundays and legal federal holidays) EA defines a “business day” as Monday through Friday, excluding Saturdays, Sundays, and federal holidays

TILA-RESPA Integrated Disclosure – TRID Tolerances 10% Cumulative Tolerance Recording fees Charges for third-party services where: Not paid to the lender/broker or affiliate of the lender/broker and borrower was permitted by the lender/broker to shop, and the borrower selected a third-party provider on the list provided by the lender/broker

TILA-RESPA Integrated Disclosure – TRID Tolerances Variances permitted without tolerance Includes: Prepaid interest, property insurance premiums, amounts placed into escrow Services required by lender/broker that the borrower shops for and selects a third-party provider not on the written list of service providers Charges paid to a third-party service provider not required by the lender/broker

TILA-RESPA Integrated Disclosure – TRID The Closing Disclosure (CD) The CD… Replaces and combines the final TIL and HUD-1 Settlement Statement CD is effective for all loans with applications taken on or after October 3 rd EA will prepare and deliver the CD CDs will be prepared and delivered within 24 hours of the loan going “pink” in EASY

TILA-RESPA Integrated Disclosure – TRID Delivery and Timing MUST be delivered 3 business days prior to consummation (signing loan documents) Business Day for CD purposes = All calendar days except Sundays and federal legal holidays. It is counted the same way we count the rescission period Contrary to some rumors, there is no “cooling off” period added; TRID requires the lender to disclose earlier in the closing process

TILA-RESPA Integrated Disclosure – TRID CD Page One General information Date, address, etc. Loan terms table Loan amount, interest rate, monthly P&I, prepayment penalty, balloon payment Projected payments table P&I, MI, estimated monthly payment Costs at Closing table

TILA-RESPA Integrated Disclosure – TRID CD Page Two Closing Cost Details Loan Costs Other Costs

TILA-RESPA Integrated Disclosure – TRID CD Page Three Calculating cash to close Summaries of Transaction tables

TILA-RESPA Integrated Disclosure – TRID CD Page Four Additional information about this loan: Loan features Loan disclosures Assumption information

TILA-RESPA Integrated Disclosure – TRID CD Page Five Loan calculations Other disclosures Questions and complaint information Contact information Confirmation of receipt

TILA-RESPA Integrated Disclosure – TRID Endeavor America empowers YOU, the broker, to generate the Loan Estimate Unlike other lenders that will control you and your process, EA is your partner! Remember… Since you are not sure who the lender might be on your transaction, leave the Lender Name and Loan ID blank on your LE Contact your settlement agent and all third-parties to get a detailed list of their fees as soon as you have an application Read the purchase contract, if applicable, for any inspections or other third-party fees to disclose on the LE Input your origination fee on the LE Do not collect any fees, except for credit report fee, prior to the intent to proceed receipt date EA will handle COCs and the CD for you The CD is sent as early as possible to ensure you meet your COE EA extends your lock at no-cost once a loan is clear to close On your Service Provider list, for each item that a borrower may shop for make sure you list at least one provider

TILA-RESPA Integrated Disclosure – TRID QUESTIONS? THANK YOU!