How the TRID Closing Disclosure Delivery Period Works


The new TRID rule has very strict requirements as to the delivery of the Closing Disclosure. The Closing Disclosure must be delivered to the borrower at least three business days prior to the consummation of the loan. If the Closing Disclosure is hand delivered, a waiting period commences which we’ll discuss further in a later post.

If the Closing Disclosure is delivered by mail, email, courier, or fax a delivery period of three business days precedes the waiting period. The delivery period does begin on the day the Closing Disclosure is sent. It does not start the next business day.

Delivery Example

Closing_Disclosure_Timing4-blue_03If the Closing Disclosure is delivered by mail, email, courier, or fax on a Monday it is assumed the delivery period expires on Wednesday at midnight.

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. Lenders and settlement agents also 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.

The lender must maintain communication with the settlement agent to ensure the Closing Disclosure and its delivery satisfy the requirements described above and the creditor is legally responsible for any errors or defects.

In the end, the CFPB will hold the lender responsible for ensuring the preparation and delivery of the Closing Disclosure is done properly regardless of who actually prepares the form and delivers it.

Wells Fargo Leads Industry

Wells Fargo led the industry by informing them of their intention to deliver the Closing Disclosure to the borrower. In September of 2014 they issued a statement which read:

Evidence of delivering the borrower’s Closing Disclosure with receipt at least three business days prior to closing are critical requirements for us. The data to support this must be readily accessible for internal and external audit. We considered many factors, such as the large number of settlement agents who close Wells Fargo loans in local markets, their closing volumes, limited integration capabilities to provide compliance data to us, and the evolving use of electronic delivery within the Wells Fargo loan process.

At this point in time, we believe that this critical compliance evidence can only be provided if Wells Fargo delivers the Closing Disclosure directly to our borrowers to meet the three-day requirement, including when a change occurs that requires the three-day clock to be restarted. We still must work closely with you to ensure we have accurate information on this disclosure, and because of the early collaboration needed, we are hopeful that this will create a smoother closing for everyone.

Title Products & Rates – How they’re disclosed under the new TRID rule


This video discusses how the charge for the lenders and owners title policy must be disclosed on the loan estimate and the closing disclosure.

Where is the discount applied on the Loan Estimate and Closing Disclosure?

Traditionally, when an owner’s title policy and a loan title policy are issued at the same time, insuring the same property, a discount is applied to the cost of the loan policy. In order to prevent an increase in the loan policy premium paid by the borrower in the event where borrower elected not to purchase an optional owners policy, the CFPB requires any simultaneous issued discount be applied to the owner’s policy premium and not the loan policy premium.

How is the discount disclosed?

The rule states any title insurance policy disclosed on the loan estimate and the closing disclosure must be disclosed by adding the simultaneous issue loan premium discount for the lenders title insurance coverage to the owner’s title insurance premium and then deduct the amount of a full premium rate for the lenders title insurance policy that would be charged in the transaction when the consumer declines the purchase of an owner’s policy.

Mathematically, it all works out if the borrower is paying for both the owners and lenders title policy. Because in the end, the borrower still plays the same.

What if the Seller pays for the Owners’ Title Policy?

In areas where the seller customarily pays for the owners’ title policy, the disclosure requirements on the loan estimate and closing disclosure end up costing the buyer more than they would customarily pay. Here’s why; if the seller agreed to pay for the owners title policy and the buyer agreed to pay for the lenders title policy, but the simultaneous issue discount being offered by the title company can only be applied to the owners title policy, then the seller realizes the benefit of the discount. Keeping in mind, the discount is only offered on the lenders title policy premium.

Here’s an example:

Sale price is $180,000, the buyer is obtaining a $162,000 loan towards the purchase of the property. The purchase and sale agreement states the seller has agreed to purchase an owners title policy for the benefit of the buyer. The full premiums for each policy are: owner’s policy premium $838, lenders policy premium, at full premium rate, $727. Remember, if the policies are issued simultaneously, the lenders policy would be less; it would be $360 which represents the charge for the lenders policy premium at the simultaneous issue rate. Keeping in mind the seller is the one who agreed per the sales agreement to pay the full premium amount for the owner’s title policy.

Here’s how it would compute:

Owners’ Title Premium   $838
Simultaneous Discount Off Loan Title Policy + $360
Full Loan Premium $727
$471

Loan title policy charge on the loan estimate and the closing disclosure is $727 paid by the borrower. Owner’s title policy charge on the closing disclosure is $471, which represents the charge for the owner’s title policy less the simultaneous discount for the loan policy. $838 for the owner’s title premium plus $360 for the simultaneous discount off the loan title policy minus $727 for the full loan premium, the total is $471 paid by the seller. This means the seller needs to give the buyer a credit for $367, which represents the difference between the charge for the owners title policy less the simultaneous discount.

Full Loan Policy Premium   $727
Simultaneous Discount Off Loan Title Policy $360
  $367

$727 full loan policy premium minus $360 equals $367.

In order to reconcile the charges to comply with the new rule and follow the written mutual instructions of the principles to the transaction as agreed to in the purchase and sale agreement, a debit from the borrower to the seller will have to be shown on the third page of the closing disclosure in the summaries of transactions section.

We have it covered

Don’t worry, all of the company systems are being updated, customers can still obtain accurate fee quotes which would be in compliance with the regulations using our website. Settlement agents’ production systems will be programmed to ensure the charges are disclosed properly and the purchase agreement is followed.

CFPB Proposes Two-Month Extension of Know Before You Owe Mortgage Rule

CFPB October 3 Announcement

CFPB October 3 Announcement

CFPB Proposes Two-Month Extension of Know Before You Owe Mortgage Rule

October 3, 2015

On June 24, 2015, the Consumer Financial Protection Bureau (CFPB) issued a proposed amendment to the Know Before You Owe mortgage disclosure rule, which proposes to move the rule’s effective date to October 3, 2015.

“The CFPB is proposing a new effective date of Saturday, October 3. The Bureau believes that moving the effective date may benefit both industry and consumers with a smoother transition to the new rules,”

the Bureau said in the statement.

“The Bureau further believes that scheduling the effective date on a Saturday may facilitate implementation by giving industry time over the weekend to launch new systems configurations and to test systems. A Saturday launch is also consistent with existing industry plans tied to the original effective date of Saturday, August 1.”

Although the proposed effective date has changed, our commitment to help you be ready remains unchanged. We will continue to be there for you every step of the way.

Know Before You Close.

[video] CFPB Rule Provides Tighter Fee Tolerances

CFPB Fee Tolerances Video

As discussed in previous videos, the lender has to disclose to the borrower services and service providers they can shop for on a provider list. The Lender is responsible for ensuring the figures stated in the Loan Estimate are made in good faith and consistent with the best information reasonably available at the time the loan estimate is issued to the borrower to ensure there are no tolerance violations. The rule tightens the tolerances and does not allow changes to even more types of charges from the Loan Estimate to the date of consummation.

Charges That Cannot Increase at Closing Now Include:

  • Creditor or broker charges
  • Fees charged by an affiliate of the creditor or broker
  • Charges for services for which the borrower is not permitted to shop

For charges subject to zero tolerance, any amount charged beyond the amount disclosed on the loan estimate must be refunded to the borrower.

Charges With 10% Tolerance

Charges that in the aggregate cannot increase by more than 10% are:

  • Recording fees
  • Owners title premium
  • Escrow/Closing fees
  • Charges for services the consumer shopped for using the creditor’s provided list

This means the lender may charge the borrower more than the amount disclosed on the loan estimate for any of these charges so long as the total sum of the charges added together does not exceed the sum of all the charges disclosed on the Loan Estimate by more than 10%.

If the lender permits the borrower to shop for a required settlement service but the borrower either does not select a settlement service provider or chooses a settlement service provider identified by the lender on the written list of providers, then the amount charged is included in the sum of all such third party charges paid by the consumer and also is subject to the 10% cumulative tolerance. For charges subject to a 10% cumulative tolerance to the extent the total sum of the charges added together exceeds the sum of all such charges disclosed on the loan estimate by more than 10%, the difference must be refunded to the borrower.

Charges Estimated in Good Faith (Charges That May Increase)

Charges that can increase at closing, meaning they have to be estimated in good faith include:

  • Prepaid interest
  • Impound account setup
  • Homeowner’s insurance
  • Property taxes
  • Charges for which the borrower chose a service provider not on the creditor’s list
  • Any other non-loan related charges

If the borrower chooses a provider not on the lenders written list of providers then the lender is not limited in the amount that may be charged for the service. For certain costs or terms, lenders are permitted to charge the borrower more than the amount disclosed on the Loan Estimate without any tolerance limitation. This may include:

  • Prepaid interest
  • Property insurance premiums
  • Amounts placed into an escrow, impound, reserve, or similar account
  • Services required by the lender if the lender permits the borrower to shop and the borrower selects a third-party service provider not on the lender’s written list of service providers
  • Charges paid to third-party service providers for services not required by the lenders. (May be paid to affiliates of the lender)

Lenders may only charge borrowers more than the amount disclosed when the original estimated charge or lack of an estimated charge for a particular service was based on the best information reasonably available to the lender at the time the disclosure was provided.

Tolerance Cures

The new forms group charges together making it impossible for the settlement agent to determine if there is a tolerance violation. There is no side-by-side comparison of the charges from the loan estimate to the charges shown on the closing disclosure to discern if any of them have increased.

If the amounts paid by the borrower at closing exceed the amount disclosed on the loan estimate beyond the applicable tolerance threshold, the lender must refund the excess to the borrower no later than 60 calendar days after the consummation. Although, they may cure the violation prior to consummation and it would be shown on the closing disclosure as paid outside closing to the provider covering the increased charge. The tolerance cures are shown as a lender credit on an amended closing disclosure in Section J.

Making a Smooth Transition to the New Closing Disclosure Form


As the real estate community makes the transition to the new rules and new forms set forth by the CFPB beginning October 3, there will be a short period where pre-existing escrow transactions will close using the HUD-1 Settlement Statement and new transactions will use the new Closing Disclosure Form.

The Loan Application Date is the Determining Factor

The key factor in determining which form will be used is the date of the loan application.

In other words, transactions with loan applications made before October 3rd will use the HUD-1 Settlement Statement and transactions with a loan application date after October 3rd will use the new Closing Disclosure.

Which form will be used?

Be sure to notify us of the date of the loan application when you place your Title & Escrow order.

Loan Application Before October 3

Transactions with a loan application made before October 3 will use the HUD-1 Settlement Statement.

Loan Application After October 3

Transactions with a loan application made after October 3rd will use the new Closing Disclosure Form.

Communication is Key

Let us know the date of the loan application at the time an order is placed with us. This is the best option for a seamless, smooth transaction. If you don’t have a loan application date at the time of opening, please let us know as soon as you do so that we may ensure that the proper forms are used and your transaction is smooth and successful.

Ticor is your CFPB Readiness Partner

Regardless of the date of the Loan Application, we are prepared to serve you and dedicated to your successful transaction.

Announcing Ticor Title’s Spokane Operation

We are pleased to announce the opening of our new Title & Escrow office in Spokane. You’ll find us conveniently located at 1330 N Washington St, in the Rock Pointe Corporate Center Building. Thank you for choosing Ticor Title as your preferred Spokane Title Company!

Spokane Title Company - Ticor Title

National Strength & Local Feel

The growth of our Washington State operation has brought us into 19 counties including our newest location and dedicated staff of Title and Escrow experts serving the Spokane area.  The unrivaled strength of our national brand and experience of our local professionals provide the peace of mind and personalized service levels our clients have come to expect from Ticor Title.

Spokane Title & Escrow Rates

Click here to open.Spokane-Rates--T&E 20150512-

A Better Closing Experience

When you and your clients arrive at Ticor Title in Spokane, you’ll be greeted with a smile, offered refreshments, and promptly escorted to your reserved signing room. Families are welcome as we have accommodations for children as well.

We look forward to serving you at our new Spokane location and thank you for choosing Ticor Title for your residential and commercial real estate transactions.

Where to find us

Ticor Title – Spokane

1330 N Washington St.
Suite 3525
Spokane, WA 99201
Phone: 509-327-2381
Fax: 866-846-1127

Map & Directions

CFPB [Infographic]- How the CFPB Impacts You

In October of 2015, the lending and real estate industries will be required to use new forms and new rules that were created for the purpose of protecting consumers and making financial products easier to understand and compare. The new organization that published the new regulations is the Consumer Financial Protection Bureau or CFPB.

Below is an infographic that illustrates the brief history of the CFPB, what new forms to look for, 5 things you need to know before October 2015, and how the closing calendar will be impacted.

Questions or comments?  Please share below!

CFPB Tips – An Overview of the Loan Estimate


The new Loan Estimate replaces the early TILA disclosure and the Good Faith Estimate. The Creditor must provide the Loan Estimate to the Borrower within three days of application. An application is considered received when the consumer provides the following information:

Consumer Information

  • Name
  • Income
  • Social Security number to obtain a credit report
  • Address of the subject property
  • Estimate of the value of the property
  • Mortgage loan amount sought

Unlike the Good Faith Estimate, the Creditor is not allowed to revise and re-disclose if charges go up or down prior to the closing. The Creditor can only reissue a Loan Estimate based on six events which qualify as changed circumstances. Creditor errors are not legitimate reasons for revising Loan Estimates. The CFPB commented, “If a creditor is allowed to reset the estimate used for good faith analysis every time there is a changed circumstance, it weakens the tolerance rules.”

Provider Lists

The Loan Estimate must be delivered to the Borrower with an attached provider list for those services the Borrower is permitted to shop for. the provider list reflects the required services to be performed, the approximate cost for the service, the suggested company to provide that service, and the company’s contact information. If the Consumer selects the provider named on the list, the fee for that service cannot increase at closing.

Note: If our company is named on the list and the Consumer selects our company as the provider, our fees must match the quoted fee by the lender.

Lenders are responsible for ensuring the figures stated in the Loan Estimate are made in good faith and consistent with the best information reasonably available at the time the Loan Estimate is issued to the Borrower. The settlement service providers identified on the list must match up with the services the borrower can shop for as disclosed on the Loan Estimate. The lender may also identify on the written list of providers those services for which the Borrower is not permitted to shop, as long as they are clearly distinguished from those services for which the Borrower can shop for.

What Determines Good Faith

Whether or not a Loan Estimate was made in good faith is determined by calculating the difference between the estimated charges originally provided in the Loan Estimate and the actual charges paid by or imposed on the Consumer in the Closing Disclosure. The charges on both forms must be alphabetized in each section by the charge description. Title and Escrow charges must all be grouped together by the preceding word “Title”, with the exception of the owners policy which is categorized as “other” on both forms and set apart from the balance of the title and escrow charges.

Questions or comments? Please contact us or share below!

CFPB – [Video] New Terms & Language to Look For


CFPB-TerminologyStarting October 3, 2015, the new CFPB Integrated Mortgage Disclosures under the Real Estate Settlement Procedures Act (Regulation X) and the Truth-In-Lending Act (Regulation Z) will be used for residential real estate transactions. Any residential loan originated after October 3, 2015 will be subject to the new rules and forms set forth by the CFPB. The Rule replaces the Good Faith Estimate (GFE) and early TILA form with the new Loan Estimate. It also replaces the HUD-1 Settlement Statement and final TILA form with the new Closing Disclosure.

Learn the CFPB Lingo

With the new rules and new forms comes new terminology and language. The video here explains what language to look for, including:

CFPB New Terms and Definitions
Terminology Definition
Consumer The Borrower
Consummation The day the borrower becomes legally obligated to repay the debt – the date of the signing of the loan documents
Creditor A Loan Originator, Lender or Mortgage Broker
Business Day A day on which the creditor’s offices are open to the public for carrying on substantially all of its business functions. For purposes of rescission under TILA – all calendar days EXCEPT Sundays and Legal Public Holidays

Ticor is your CFPB Readiness Partner

Forms, dates, rules, and laws… it can seem like a lot to take in. The good news is that we’ve done our homework and we’re here to guide you through.

To learn more about how the CFPB changes impact you, contact a local representative.

CFPB – The New Loan Estimate In Plain English

What is the CFPB?

A plain-english guide to the Consumer Financial Protection Bureau. You’ll find simple answers about the CFPB and how the new rules will change real estate transactions. To download a PDF, click here.

The CFPB Loan Estimate Form

The new Loan Estimate form replaces the early TILA disclosure and the Good Faith Estimate. It lists all the potential costs for the consumer’s loan like title insurance, percentage rates, closing costs, and the estimated monthly loan payment.

Creditors are responsible for calculating the best estimates possible for these services, which will be checked against the actual costs listed in the Closing Disclosure form when the loan is consummated. And unlike the former Good Faith Estimate, creditors can no longer revise and re-disclose if charges go up or down prior to closing. After all, resetting the estimate every time a circumstance changes weakens the purpose of the estimate!

Once a consumer’s application is received, the creditor has three days to deliver the Loan Estimate and should include a list of providers for services the consumer can shop around for.

Ticor is your CFPB Readiness Partner

Forms, dates, rules, and laws… it can seem like a lot to take in. The good news is that we’ve done our homework and we’re here to guide you through.

To learn more about how the CFPB changes impact you, contact a local representative.