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1/8/2010Calyx is currently structured so that fees shown in Section 3 that are "required services that we select" do not show up on the Service Provider List and the fee amount input rolls into the origination charges in Section 1. This is not incorrect as required by RESPA Reform. However, many want to show these as separate fees so payment can be made through the title agent directly to the contract processor at closing. So you will still show as a Section 3 fee and it does not matter whether you show the processing fee on Line 810 for Processing or add as an additional fee in Section 800 on the IFW, the fee amount will be added to Section 1 origination charges. If the fee is for a contract processor, the section regarding who the fee is paid to should show "Other" and not "Lender". The same question has been raised about appraisals and collecting a fee upfront.
If the item will be paid upfront, you collect a fee from the borrower and explain that this fee will be credited back at closing against the origination charges in Section 1. If the item will be paid direct to someone at closing, explain to the borrower that the fee will be paid at closing for contract processing and credited back against origination charges in Section 1. In neither case will the fee be shown on the Service Provider List nor does it need to be. We still do not have confirmation from the VA of any changes they have approved to their program for compliance with the new GFE. Therefore, we have to assume that no changes have been made. As a result, you would complete the Initial Fees Worksheet the same way you would for any loan except your origination fee is limited to 1% and the additional line item charges listed on the GFE according to their number and place. In the event the seller is paying non-allowable charges, those charges would not be listed on the GFE. No Tax Service Fee should be charged the veteran regardless of whether the 1% charge is paid or not. 12/30/2009Network uses the law firm of Gregg & Valby to prepare closing documents for us. In Texas, these documents are required to be prepared by an attorney. Outside of Texas, these documents may be prepared by the lender. In both cases, FHA requires that this fee be included in the origination charges in Section 1 of the GFE. The fee includes a doc prep fee plus an optional fee for the warranty deed if the title agent uses. The warranty deed will be paid by the seller so it is not included. However, on a refinance, the documents include a Release of Lien that may be used at the option of the title agent so this amount should be included on a refinance. Yes. DocuTech is a company that will create application packages that may be emailed to a borrower and the borrower accept the email to confirm receipt and acceptance. It includes all documents from Calxy including the TIL and GFE and will also include all state required disclosures or loan type disclosures regardless of loan type. At this time, DocuTech is loading all of our employees into their system and when they are complete, we will begin training. We are in the process of creating this and hope to have options available to you the first of January. We cannot order a closing wire until we have a HUD-1 that is approved by Network and the closing agent. This policy has not changed and will not change with the new GFE and HUD-1. The challenge will be in the time required to get the HUD-1 approved by both based on the changes in this new law. At this point, we cannot predict how long that will take and would encourage you to have closing documents requested substantially ahead of the actual closing since there are so many unknowns with this change. No, that is not correct. There is no provision in this RESPA Reform law to delay closing. However, the requirements for MDIA still exist and the re-disclosure of the TIL will still apply if the variance in the TIL is greater than .125%. At this point, we have not agreed to eliminate the borrower acknowledgment of discount form that the borrower signs showing their acceptance of a lower rate with discount. So this form is still required in addition to the appropriate languange on the GFE. There is no place on the GFE to show costs normally paid the borrower that will be paid by the seller or lender at closing. The purpose of this GFE is to give the buyer an estimate of the costs he will have to pay at closing. It does not address how those costs will be paid. So you will have to explain to your borrower that these are total costs and this much may be paid by the seller per your contract. There is no place on the GFE to give the borrower the cash required at closing or the total PITI payment. Yes - Truth-in-Lending and RESPA are two separate laws with two different enforcement agencies. So fees charged the borrower are etiher PFC fees or they are not and the APR will calculate on the TIL based on your designation of fees as PFC. The rules for which fees are PFC fees has not changed. |
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