Posted by Shoshana Roller on 8/15/09 11:28pm
Msg #300202

Hypothetical situation.....for now.

The new RESPA regs took effect on 7/30. What it means is that the borrower will get disclosures 6 ways to Sunday. There are prescribed waiting times between the LO's disclosures and the ones sent to the borrower by the lender. If the rate changes more than .125, new disclosures must be ordered and the prescribed waiting period begins again.
So, how would you handle it if the borrower says to you something like.......We never discussed these fees before; or I didn't know I had to bring $5000 to the table, etc.

Reply by PAW on 8/16/09 7:15am
Msg #300207

Borrower, you need to discuss this with ...

your Loan Officer or Broker. Keep out of the discussion.

Reply by desktopfull on 8/16/09 7:32am
Msg #300209

You keep your mouth shut about the docs and refer them

to their lender. That is out of our perview and answering can get you into a lot of trouble.

Reply by mwm143 on 8/16/09 12:41pm
Msg #300224

Handled the same was as before the new RESPA rules n/m

Reply by Vince/KS on 8/16/09 3:00pm
Msg #300234

If I had any control on any of the terms offered, I'd feel a need to discuss them. Since I do not, the borrower needs to discuss with the one who does. He /she can stop the closing or hope to work out any differences during the rescission period.

If the terms are usually and/or always bad with a particular company - then you need to decide if you want to accept work from them.

Reply by JanetK_CA on 8/16/09 8:38pm
Msg #300281

I think you bring up a good point. I haven't read through the new regs, but it would be nice if there were a new document in packages that explains these requirements so we could just review that to give the borrowers a heads-up. (So far, I haven't seen anything like that, although my phone has been pretty quiet since the first of the month, too.) Short of that, I don't think there's much, if anything, we can do.

Frankly, I don't have a great deal of hope that we will see full compliance with this. After all, how long has there been the requirement about GFEs and TILs being disclosed up front and how often do we see "broker docs" in packages that the broker wants predated?

The main problem I see with getting involved in this is that we have no way of knowing for sure whether they did or didn't get them. They may have arrived, but weren't looked at. Reminds me of a modification appt. I had recently. When I asked the borrower if he'd had a chance to review the documents yet, he said he hadn't received them and had already checked his mail for the day. I told him that they were usually sent via an overnight service. Sure enough, they were still sitting on his front porch.

Reply by Shoshana Roller on 8/16/09 9:21pm
Msg #300283

Janet, as a loan officer, I don't see any legal way around it. The lender will not proceed with the loan unless they get the electronic receipt back from the borrower. The lender docs are emailed to all who have an email address. Otherwise, they are sent snail mail which takes even longer. By law now, the borrower can only pay for the credit pull prior to the 3 day period past the reciept of lender disclosures. So on the 4th day, borrower can then pay for appraisal, loan app fee, etc.
Of course the broker's disclosure docs are signed first. That begins the first 3 day waiting period.
All this is done to save the borrower from himself.

Reply by Linda_H/FL on 8/17/09 8:37am
Msg #300298

And as was pointed out earlier, any change

greater than and eighth of a point requires re-disclosure, triggering a new disclosure period. If I'm not mistaken, if the LO who was discussing this had read the regs correctly, that new disclosure period moves to 7 days...

So the initial period is 3 days and ever subsequent redisclosure period triggered by a 1/8 point change is 7 days.....correct?

Reply by Margaret Paddock on 8/17/09 1:13pm
Msg #300362

Re: Notary Public Responsibility

None of this is the responsibility of the notary.
If you have a question call the contact you are given and let them work it out with the borrower.
We can NOT, by law offer an explanation of any document.

Our job is only to notarize. The responsibility of correctness lies with the lender.