How to Eliminate Signing/Consummation Date Guesswork

TRID Calendar

TRID Calendar - Determine Consummation Date
By now, we’re all familiar with the Closing Disclosure delivery period and review period guidelines set forth by the CFPB. The delivery and waiting period guidelines have made it more challenging to plan and schedule signings because the delivery method, non-working days, and federal holidays all have to be factored in when determining the earliest possible consummation date or required delivery date for a specific consummation date. And of course, there’s the 3-day rescission period that applies to refinance transactions.

To eliminate the guesswork and speed up the calculation process for our clients and partners, we are happy to announce the availability of the Ticor Title TRID Calendar. The TRID Calendar is an interactive tool that illustrates all the important dates in three simple steps.

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NOTE:

If a federal holiday falls within the Delivery and/or Waiting Periods, add an additional business day.

The three-day period is measured by days, not hours. Thus, disclosure must be delivered three days before closing, and not 72 hours prior to closing.

Disclosures may also be delivered electronically to the Delivery Period and may be signed in compliance with E-Sign requirements.

Where to Find the TRID Calendar

Access the TRID Calendar at http://ticortitle.com/cfpb/calendar.htm on a desktop, tablet, or mobile device.

How the TRID Calendar Works

Determining the delivery period, review period, consummation date, and rescission period can be achieved in three simple steps:

  1. Specify loan purpose (purchase or refinance)
  2. Specify delivery method (personal delivery, mail delivery, electronic delivery)
  3. Click a date on the calendar to specify signing/consummation date

The TRID Calendar will instantly illustrate the delivery period, review period, signing/consummation date, and rescission period (for refinances) to the calendar.

Save a PDF for Your Records

TRID Calendar PDFAs a convenience, the TRID Calendar provides the option to create and save the calendar as a PDF. To create a PDF of your illustrated calendar, click the “CREATE PDF FILE” button at the bottom of the TRID Calendar page . The PDF file displays the delivery period, review period, consummation date, rescission period, as well as holidays that occur during any of the periods. Also included in the PDF is an explanation of Consummation.

What is Consummation?

Consummation is the day the borrower becomes legally obligated under the loan, which would be the date of signing, even if the loan has a rescission period.It is important to note the definition of consummation can be different than the closing date as defined in the purchase agreement where the buyer becomes contractually obligated to a seller on a real estate transaction.

Open House May 12 – Ticor Title Lynnwood

Ticor Title Lynnwood Open House May 12, 2016

You’re invited to join us for food, refreshments, and good times as we celebrate the recent opening of our Lynnwood escrow office!
Thursday, May 12

At Ticor Title Lynnwood, we believe that every successful real estate transaction begins with a great team. We are proud of our dedicated family of professionals who are committed to the highest levels of service to our clients, the Lynnwood community, and each other.

So please join us as we celebrate our growing team and new Lynnwood location!
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When:

May 12
4PM – 7PM

Where:

Ticor Title – Lynnwood
19020 33rd Ave W
Suite 550
Lynnwood, WA   98036
Map & Directions – Ticor Title Lynnwood

RSVP:

Scott Huggins
425-361-3776
scott.huggins@ticortitle.com

What is Escrow [video]

What is Escrow


Making a simple financial transaction is pretty straightforward, right?
You get the goods, he gets the money, and a receipt is your proof of ownership. But how do you make a financial transaction as large and as complicated as a home purchase or refinance?

How Escrow Works

That’s where escrow comes in. Your escrow officer is an essential partner who mediates a complicated financial transaction to make sure it’s done accurately and fairly.

Here’s how it works: When a buyer and seller come to an agreement on the terms of sale, everyone involved gives their part of the transaction to the escrow officer. Then the escrow officer ensures everyone does what they agreed to do before handing over the deed and distributing funds appropriately.

And by the time the property changes hands or the refinance is complete, all the variables are coordinated and everyone has peace of mind it was all done correctly! To learn more about escrow contact your Ticor Title representative.

Escrow Workflow

Click to Download

Escrow Workflow

The Escrow process in 12 steps. This flowchart illustrates which items are performed by escrow and which items are performed by the Lender.

Click here to download

Open House April 13th – Ticor Title – Gig Harbor

Gig Harbor Open House 2016

Gig-Harbor-open-house-2016

You’re invited to join us for food, refreshments, live music, and good times as we celebrate the recent relocation of our Gig Harbor escrow office!

At Ticor Title Gig Harbor, we believe that every successful real estate transaction begins with a great team. We are proud of our dedicated family of professionals who are committed to the highest levels of service to our clients, the Gig Harbor community, and each other.

So please join us as we celebrate our growing team and expanded Gig Harbor location!
Read more...

Download the Invite

Ticor Title Open House 2016 Gig HarborClick here to download the invite

When:

April 13
4PM – 7PM

Where:

Ticor Title – Gig Harbor
5775 Soundview Drive #204B
Gig Harbor, WA 98335
Map & Directions

RSVP:

Lucy Ritchie
253-358-0034
lucy.ritchie@ticortitle.com

PATH Act Increases Withholding Rate up to 15%

FIRPTA PATH Update February 17, 2016

FIRPTA PATH withholding explanationOn December 18, President Obama signed the Protecting Americans from Tax Hikes (PATH) Act of 2015. This law creates significant changes to the provisions of the Internal Revenue Code of 1986, which amended the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA).

What does the new rule change about withholding requirements?

Settlement agents must begin holding back 10-15% proceeds from the sale of real property by foreign nationals. Property bought by foreign persons that will be used as a personal residence is exempt from the increase if the sales price does not exceed $1,000,000. If the previous exception for personal residences does not apply, the 10% withholding rate is retained. If the price is higher than $1,000,000, the new 15% withholding rate will apply.

Download

Download a printable version:
PATH ACT FIRPTA update

What are the benefits?

The PATH Act benefits the real estate industry by doubling the maximum amount of stock ownership that a foreign investor may have in a real estate investment trust (REIT) from 5% to 10%. Another additional benefit is that the law permits certain foreign pension funds to invest in REITs without having FIRPTA treatment apply.

When does it go into effect?

The PATH Act is effective 60 days after Obama signed it into law. This applies to sales on and after FEBRUARY 17, 2016.

What are the guidelines settlement agents must follow when remitting funds to the IRS?

  1. If the amount realized is $300,000 (typically the sales price) or less, and the property will be used by the foreign buyer as a residence (within current regulations), no amount will be withheld or remitted to the IRS.
  2. If the amount realized above $300,000 but does not exceed $1,000,000 and the property will be used by the buyer as a residence, then the withholding rate is 10% of the entire amount realized.
  3. If the amount realized exceeds $1,000,000, then the withholding rate is 15% on the entire amount, regardless of how the property is used.

Are there any obligations for FIRPTA withholding by the real estate agent or broker?

If you represent the buyer or seller of real property subject to FIRPTA withholding, you could be liable for the tax that should have been withheld by the buyer in certain circumstances.

If you have additional questions about the PATH Act, please contact a tax professional.

Ticor Title Spokane Valley Expands Team!

Ticor Title Spokane Valley Expands Team

Ticor Title Spokane Valley Expands TeamWelcome Pam Koep and Melissa Stewart!

Location & Contact

16201 E Indiana Ave, Suite 3300
Spokane, 99216
Phone: 509-928-9665
Fax: 855-885-2346

Online

TeamPam@TicorTitle.com
TicorSpokane.com

We are pleased to announce the expansion of our new Spokane Valley Operation with the addition of Pam Judge – Closer/LPO, and Melissa Stewart – Escrow Assistant. We believe that every successful closing begins with a great team. Please join us in congratulating Pam and Melissa for joining Team Ticor!

Pam Koep – LPO/Escrow Closer

Pam began her career in 1999 as a receptionist and worked her way up into title and landed in escrow about 14 years ago. An LPO for 3 years, she is very organized and likes to stay on top of her files, delivering CD’s or HUDS as quickly as possible.

Clients commend Pam for the way she explains documents to their clients and facilitates timely signings. Her goal is to make transactions flow smoothly for everyone.

Pam is a Northwest native with one child. She spends her free time outdoors and enjoys camping. She also enjoys doing crafts, traveling, and time with family and friends.

Pam Koep

LPO/Escrow Closer
Spokane Valley Office
(509) 742-5305
pam.judge@ticortitle.com

Melissa Stewart – Escrow Assistant

Melissa has been in the Title & Escrow industry for over eight years and is known for her attention to detail and structured approach to working with clients and transactions. She prides herself on her ability to cultivate positive relationships and takes a team approach to achieving goals.

Melissa loves to travel and experience the adventure of new sights, cultures, and food. On the weekends, you might find her spending quality time with family, reading a good book, or playing tennis with her hubby.

A Spokane resident of 27 years, Melissa attended middle school and high school there before earning a degree in Elementary Education from Eastern Washington University.

Melissa Stewart
Escrow Assistant
Spokane Valley Office
(509) 742-5304
melissa.stewart@ticortitle.com

Escrow Workflow – 12 Steps to Closing with the TRID Forms

As we all know, the Closing Process has changed since the enactment of the new TRID rule. And with the implementation of new forms, lenders and settlement agents work together to determine a workflow for the completion and delivery of the Closing Disclosure during the closing process. Below is one example that illustrates the process and shows which items the Lender typically performs and which items Escrow typically performs.

Download

CFPB Escrow Workflow

Download a PDF of the CFPB Escrow Workflow here.

Who Completes the Closing Disclosure?

Lenders and settlement agents may agree to divide responsibilities with regard to completing the Closing Disclosure with the settlement agent assuming responsibility to complete some or all of the Closing Disclosure.

Who Delivers the Closing Disclosure?

The rule makes the lender responsible for ensuring that the consumer receives the Closing Disclosure. Lenders may work with the settlement agent to have them deliver the Closing Disclosure to consumers on their behalf.

Typical Escrow Workflow:

PERFORMED BY LENDER

PERFORMED BY TICOR TITLE

Open Order

Lender will send order request through Real EC to the Ticor Title Escrow unit. The Escrow unit will open the escrow and request title report and order any payoffs required.

1
  2

Confirmation of Order and Preliminary Report

A confirmation is sent to the lender that the escrow order is opened and the preliminary report will be uploaded to Real EC.

Documents Request

A CPL, fee quote, wiring instructions and any other documents that are requested by the lender will be uploaded to RealEC.

3  
  4

Closing Disclosure Preparation

Upon delivery of lender’s instructions, the escrow unit will prepare the closing disclosure and upload to Real EC for lender review and approval.

Delivery of Closing Disclosure

The Lender or escrow unit will prepare and deliver the closing disclosure to the borrowers as instructed and within the timeframe as required by the lender.

5

Delivery of Closing Disclosure

The Lender or escrow unit will prepare and deliver the closing disclosure to the borrowers as instructed and within the timeframe as required by the lender.

Closing Instructions and Loan Documents

Lender will prepare Closing Instructions and Loan Documents and send to escrow unit through Real EC.

6  
  7

Signing / Consummation

Once received, escrow will schedule an appointment with the borrowers to sign the loan documents upon the expiration of the disclosure period.

  8

Loan Documents to Lender

The escrow unit will return executed loan documents and provide any outstanding conditions through Real EC that are required for the lender to provide funding authorization.

Funding Requirements

Lender provides additional funding requirements to Ticor Title Escrow & Escrow provides requirements to Lender.

9  

Lender Funds

Lender sends funds to Ticor Title Escrow unit.

10  
  11

Recordation

Once the wire is received from the lender, the escrow will record the Deed of Trust and any additional required documents with the County Recorder’s office. ~ The original recorded documents will be uploaded to Real EC and sent to the lender as required.

  12

Final Title Policy

The title company will send the final title policy to the lender as per their lender’s instructions.

Ticor Title Expands to Spokane Valley

Ticor Title Spokane Valley

Ticor Title Spokane ValleyWe are pleased to announce the opening of our new Spokane Valley Operation and that Mick Templeton AVP / Branch Manager / Escrow Closer, Melody Sarff, Escrow Assitant, and Tricia Osterholm, Escrow Assistant have joined our Spokane Ticor Team and will staff our new office.

Mick and his team have been serving the real estate community in the Spokane Valley area for many years as an independent escrow operation.

Please join us in congratulating the new members of our team!

Mick-Templeton-150
Mick Templeton
AVP/Branch Manager/
Escrow Closer
Melody-Sarff-150
Melody Sarff
Escrow Assistant
Tricia-Osterholm-150
Tricia Osterholm
Escrow Assistant

Where to find us

16201 E Indiana Avenue, Suite 3300
Spokane Valley, WA 99216
(509) 928-9665

Owner’s Premium & Simultaneous Issue Discount – Under the New CFPB Rules

owners premium simultaneous issue

If a buyer opts not to purchase an owner’s policy, in most states they would not receive the benefit of a simultaneous issue discount applied to the loan policy premium. Currently, in a typical residential transaction, a lender quotes the discounted rate on a Loan Estimate.

However, any increase in this premium would result in a tolerance violation or increased annual percentage rate. Therefore, the CFPB wrote into the new rules any simultaneous issue discount must be applied to the owner’s policy premium and not the loan policy premium.

Therefore, when the new CFPB rules are implemented, the lender will need to disclose the full lender’s policy premium on the Loan Estimate and the preparer of the Closing Disclosure will charge the full loan premium. The new formula for calculating the owner’s premium with the simultaneous issue discount applied is as follows:

Owner’s Premium
+ Simultaneous Issue Rate
Full Loan Premium
= Owner’s Rate

The new calculation method applies regardless of which party to the transaction is paying the owner’s policy premium. For example, the premiums on the purchase of a $300,000 residence with a $240,000 loan closed simultaneously with actual premiums are as follows:

Owner’s Policy Premium $1,090
Loan Policy Premium (Full Rate) $ 928
Loan Policy Premium (Simultaneous Issue Rate) $ 469

On a transaction closed prior to the effective date of the new rules the seller would pay $1,090 and the buyer would pay $469. On the same transaction closed after the effective date of the new rules the disclosure would reflect the seller paying the calculated premium of $631 and the buyer paying the full loan premium of $928.

The title provider will still receive all the total premium dollars due to them. However, the seller ends up paying $459 less than obligated and the buyer ends up paying $459 more than obligated.

OP&SI_Discount_Ticor

The only way the formula works is if one of the parties to the transaction is paying both policy premiums, which in most markets is not customary. As a result, our systems have been designed to provide an off–setting debit to the seller for the balance of the owner’s premium and an offsetting credit for the same to the buyer.

The disclosure amounts, and off–setting debits and credits only appear when the Closing Disclosure is printed using the Company’s escrow production systems. Any other document, such as a closing statement or fee ticket, will print the premium dollars in the normal fashion.

Announcing the Ticor Title TRID Wheel

TRID Wheel

The Ticor Title TRID Wheel is the only wheel that instantly determines earliest Consummation Date!

TRID Wheel to determine Consummation Date
Based on the new CFPB rule that goes into effect beginning Oct. 3, 2015, this carefully crafted and well planned TRID Wheel is designed to eliminate the guesswork in determining earliest Consummation Date.

Use the wheel to:

• Instantly determine earliest Consummation Date
• Estimate required closing days by working backwards on the wheel

Reserve Yours Today!

Contact your Ticor Title representative to reserve your Ticor Title TRID Wheel today. Supplies are limited.