Posted by Art_MD on 4/18/05 7:29am
Msg #32398

deepgreen - no TIL, Note

Did a Sunday signing for deepgreen. Received the docs a couple of days ahead, checked that the docs matched the content report page (not really paying attention to what was in the package - just that what they said was there really was there). All checked out.

During the signing it hit me that there was no TIL and no note.

Having done only 2 previously for deepgreen (no problems), can anyone tell me if they operate differently and no TIL or note is something unique to them?

Thqanks,

Art

Reply by Bob-Chicago on 4/18/05 8:24am
Msg #32402

Re: deepgreen - no TIL, Note ----OK

THese are HELOCs (home equity line of credit)
Typically there is not HUD or TIL on a HELOC
You should read through the docs so that you can make a BASIC explanation to bwr , if necessary
Usually no explanation is necessary because they usually know ahead of thime what is happening
Think of a HELOC almost as a credit card secured by the equity in the home.
NOTE < DG helocs MUST be closed in the home Can not go to a neutral location , work etc.
A little tricky to keep track of docs as they do not come separated
One copy signed (except mortgage 2 copies signed and one copy of bwr except RTC , 2 copies for each bwr
Good luck, once you get the hang of them , they are EZ to do

Reply by Art_MD on 4/18/05 8:30am
Msg #32404

Re: deepgreen - no TIL, Note ----OK

As far as I know, TIL is required by federal law.
I just can't remember ever (over 1000 signings to date) not having a note in a loan package.

Art

Reply by Bob- Chicago on 4/18/05 8:39am
Msg #32405

NOT required for a HELOC

Heloc has a loan agreement, not a Note
There is no fixed rate or payment
They pay only when and if they use the HELOC
READ the docs

Reply by PAW_Fl on 4/18/05 8:43am
Msg #32406

Re: deepgreen - no TIL, Note ----OK

There are times a TIL is NOT required. The following is from the Compliance Departments Q&A and posted here for your information.

New disclosures are required only if the transaction is a “refinancing” as that term is defined by Regulation Z. A “refinancing” for Regulation Z purposes occurs when the original obligation is satisfied and replaced with a new one undertaken by the same consumer. It’s not always easy to decide whether that has happened when you do what you might call a “modification” or “extension.” The Regulation lists four circumstances that it says are not refinancings:

(1) A renewal of a single payment obligation with no change in the original terms.

(2) A reduction in the annual percentage rate with a corresponding change in the payment schedule.

(3) An agreement involving a court proceeding.

(4) A change in the payment schedule or a change in collateral requirements as a result of the consumer's default or delinquency, unless the rate is increased, or the new amount financed exceeds the unpaid balance plus earned finance charge and premiums for continuation of insurance of the types described in Sec. 226.4(d).

Just because you can’t find your circumstance on this list does not mean you’ve necessarily done a refinancing requiring new disclosures. This is just a list of four examples of transactions that are not refinancings. There could be others.

Here’s what the Commentary says:

A refinancing is a new transaction requiring a complete new set of disclosures. Whether a refinancing has occurred is determined by reference to whether the original obligation has been satisfied or extinguished and replaced by a new obligation, based on the parties' contract and applicable law. The refinancing may involve the consolidation of several existing obligations, disbursement of new money to the consumer or on the consumer's behalf, or the rescheduling of payments under an existing obligation. In any form, the new obligation must completely replace the prior one.

* Changes in the terms of an existing obligation, such as the deferral of individual installments, will not constitute a refinancing unless accomplished by the cancellation of that obligation and the substitution of a new obligation.

* A substitution of agreements that meets the refinancing definition will require new disclosures, even if the substitution does not substantially alter the prior credit terms.

(posted 12/20/04)

Reply by Art_MD on 4/18/05 9:07am
Msg #32407

Re: thanks for the info

Thanks for the info.

Since one loan is being paid off, and a heloc signed, I still think that a TIL would be required. But, ours is not to question why. I did my job. I earned my pay.

Thanks again

Art

Reply by SarahBeth_CA on 4/18/05 9:50am
Msg #32413

Re: deepgreen - no TIL, Note ----OK

Thankyou for reposting that, very explainitory...