TRID Tip of the Day

[Pages:4]TIP OF THE DAY

Monday, 11/23/2015 Question: When can I order the appraisal? Answer: The appraisal can be ordered as soon as the borrower receives the Loan Estimate (LE) and provided you with an Intent to Proceed (ITP). CMG will accept the ITP verbally from your borrower, you will need to provide a signed acknowledgement that you received the ITP and the date you received it. If you received the ITP in writing from your borrower, we would require a copy of the written ITP.

Tuesday, 11/24/2015 Question: With the implementation of TRID, can I still do a TBD? Answer: CMG still accepts TBD loans for preapproval. Since you do not have a property address (the sixth piece of the application), as a TBD the loan is not eligible to receive an LE or disclosure package. You can create the new loan, package and submit for approval. Once the borrower provides you the property address (you aren't required to have the executed contract), the TBD is now considered an application and an LE must be sent to the borrower within 3 general business days. You will need to forward the property address to your Account Manager. The AM will update the address and product code and then you will be able to request the LE online. You will nd the Request LE as part of the loans action items.

Wednesday, 11/25/2015 Question: Can I lock a loan without requesting a Loan Estimate (LE)? Answer: Yes, CMG will allow you to lock before the LE is issued, however our system is set up to allow you to request your LE at the same time you lock the loan. This feature should only be used in the rare circumstance when you need to lock a loan but DO NOT have the six pieces of the application. Within two business days of locking the loan or within 2 days of the application, whichever comes rst, you must request a Loan Estimate or the lock may be cancelled and subject to the relock policy. An LE may be requested by clicking on the loan number in your pipeline and scrolling down to the Loan Action items. Click on Generate Loan Estimate, and complete the required information.

Monday 11/30/2015 Question: When I am completing the form to request an LE, I noticed a new `Miscellaneous Fee, Comments or Credit Explanations' box, what do I put in there? Answer: This box is not mandatory. This is a free form area for you to communicate any fees that were not captured on the LE request form such as a VOE, Payoff, or Condo Questionnaire fee, etc. You can also use this area to provide comments about the le or list any credits other than the seller credit.

Tuesday, 12/1/2015 Question: When should the Intent to Proceed be dated? Answer: The Intent to Proceed (ITP) should be dated on or after the date the CMG Loan Estimate (LE) was prepared, however, CMG will accept an ITP that was received prior to the CMG LE preparation date.

Wednesday, 12/2/2015 Question: When can I submit my loan to CMG? Answer: You can submit your loan to CMG as soon as you have created your loan, received a loan number and requested the Loan Estimate on the CMG Broker Web.

Thursday, 12/3/2015 Question: What do I do when I discover a fee has increased or new few incurred and the Loan Estimate has already gone out to the borrower(s)? Answer: Any fee increase or new fee incurred by the broker that will be charged to the borrower must be reported to CMG at the time that you are aware of the fee. The COC option can be found by clicking on the loan number in the CMG Broker Web or action item to the far right of the loan number. Next scroll down to the Loan Action items and click on Broker COC Request. Here you will enter any new fee or updated fee and then click submit. CMG will be noti ed of the fee change or update and process the request accordingly. The online from will be available to you until the le is in a clear to close status. All other non-fee related changes that require an underwriter's approval such as loan amount or program changes must be submitted and coordinated with your CMG Account Manager.

Friday, 12/4/2015 Question: Who needs to open/acknowledge receipt of the Loan Estimate (LE)? Answer: CMG will send the LE to all borrowers on the transaction. Only one of the primary borrowers must open/ acknowledge receipt for the LE to be considered receive.

Monday, 12/7/2015 Question: Who needs to open/acknowledge receipt of the Closing Disclosure (CD)? Answer: It depends on the transaction type.

? For non-rescindable transactions (purchase and 2nd Home/NOO re nances), only 1 borrower needs to acknowledge receipt of the CD 3 speci c business days prior to closing (the date the note is signed).

? For rescindable transactions (owner occupied re nances), all individuals with ownership interest (borrowing and non-borrowing) must acknowledge receipt of the CD 3 speci c days prior to closing (the date the note is signed).

Tuesday, 12/8/2015 Question: What information will I be required to provide when completing the online Closing Disclosure (CD) form. Answer: You will be required to complete the online CD from in full. CLICK HERE to access the CD tutorial. Please note that you will be required to provide the Name, Address, Phone, Fax and license information for the Title Company, Escrow Company, Closing Agent and Borrower's and Seller's Real Estate Agent where applicable. CMG does not retain a database of this information. Providing inaccurate information will delay your closing.

Wednesday, 12/9/2015 Question: The CD has already been received and acknowledged by the borrower(s) and I need to do a borrower paid lock extension, does a new CD need to be sent to the borrower(s)? Answer: Yes, the CD must be re-disclosed and send to all applicable parties. A new 3-Day waiting period would ONLY apply if the APR changed by more than .125% ( xed) or .250% (ARM), the program changes or a pre-payment penalty is added. NOTE: CMG does not offer loans with pre-payment penalties.

Thursday, 12/10/2015 Question: I have a purchase transaction with a non-borrowing spouse, does the non-borrowing spouse need to receive the Closing Disclosure (CD)? Answer: Depending on where the property is located and if the non-borrowing spouse is on title, see the answer below.

? Community Property State ? The non-borrowing spouse must receive a copy of the CD. ? Non-Community Property State ? The non-borrowing spouse does not need to receive a copy of the CD unless

they are on title. If the non-borrowing spouse is on title, they must receive a copy of the CD.

Friday, 12/11/2015 Question: With the implementation of TRID, can I still do a TBD with CMG? Answer: CMG still accepts TBD loans for preapproval. You can create the new loan in the Broker Portal, receive a loan number and submit the loan for underwriting approval. Without a property address you do not have an application and the loan is not eligible to receive an LE or disclosure package. Once the property address has been identi ed, you have an application and an LE must be sent to the borrower(s) within 3 general business days. You will need to forward the property address to your Account Manager. The AM will update the le and then you will be able to request the LE on the broker website. You will nd the Request LE as part of the loans action items.

Monday, 12/14/2015 Question: What information will I be required to provide when completing the online Doc Request form. Answer: You will be required to complete the online Doc Request form in full. CLICK HERE to access the CD tutorial. Please note that you will be required to provide the name, address, phone, fax and license information for the Title Company, Escrow Company, Closing Agent and Borrower's and Seller's Real Estate Agent where applicable. CMG does not retain a database of this information. Providing inaccurate information will delay your closing.

Tuesday, 12/15/2015 Question: What do I do when I discover a fee has increased or new few required after the Loan Estimate has already gone out to the borrower(s)? Answer: Any new fee or fee increase once the LE has been disclosed requires a revised LE to be issued within 3 general business days. A revised LE can be requested by submitting an online COC request through the CMG broker web. You must request the COC at the time that you are aware of the change in fee. The COC option can be found by clicking on the loan number in the CMG Broker Web or action item to the far right of the loan number. Next scroll down to the Loan Action items and click on Broker COC Request. Here you will enter any new fee or updated fee and then click submit. CMG will be noti ed of the fee change or update and process the request accordingly. The online form will be available to you until the le is in a clear to close status. All other non-fee related changes that require an underwriter's approval such as loan amount or program changes must be submitted and coordinated with your CMG Account Manager.

Wednesday, 12/16/2015 Question: When I am on the Loan Estimate (LE) or Doc Order Request page, how long do I have before the screen times out? Answer: Both the LE Request and Doc Order Request page allow for you to be inactive on the page for up to one hour before you are timed out.

Thursday, 12/17/2015 Question: When can I order my Closing Disclosure (CD), do I have to wait until the loan is cleared to close? Answer: Great News! You do not have to wait until the loan is cleared to close. As long as you have submitted the nal fee sheet and invoices to CMG, at the time that we submit your nal conditions for review, the `Doc Order Request' screen will be available for you. After completing the `Doc Order Request', a closer will be assigned to the le and the initial CD will be prepared and sent to the closing agent for approval. You will be copied on the email. Once the loan is cleared to close, the CD will be delivered to the borrower(s) for acknowledgement. (Assuming the closing agent has completed their review of the CD).

Wednesday, 12/23/2015 Question: Is the settlement agent required to use the actual Closing Disclosure (CD) form required by the CFPB when preparing the Seller's CD? Answer: Yes, the settlement agent must use the CD form required by the CFPB in the TRID Rule, which is H-25(I). If a settlement agent cannot prepare the Seller's CD using the correct form, then another settlement agent must be used to close the transaction. Thursday, 12/24/2015 Question: I receive several emails from CMG when the Loan Estimate (LE) and Closing Disclosure (CD) is sent to my borrower(s). What are they and which ones should I pay the most attention too? Answer: As the Loan Officer or Processor on a le, you will receive several emails that contain the disclosures and noti cations that con rm that the borrower has received and opened the package. Please see the example below that will walk you through the emails and de nes which email contains the link to download the disclosure package. You will only be required to enter the last 4 digits of the primary borrower's social security number to gain access to the disclosure package.

1. Email from `Your Loan Docs' referencing CMG Mortgage, Inc and the borrower's name, contains a link to obtain a copy of the disclosures. You will only be required to enter the last four digits of the primary borrower's social security number to gain access and open the disclosure package. This is the email that you will want to open to receive a copy of the disclosure package.

2. Email from `Noti cation' referencing the Document Package, this your noti cation that the borrower named has consented to electronic delivery of the le and has picked up the disclosure documents through our eSign service. This means that they have opened the disclosure package.

3. Email from `Noti cation' referencing Disclosures, this email you can ignore. It contains a link that we will allow you to download and eSign the documents. CMG does not require that you sign any of the documents. Please refer to the email from Your Loan Docs to obtain a copy of the disclosures.

? 2015 CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS# 1820 in most, but not all states. CMG Mortgage Inc. is an equal opportunity lender, licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; Loans made or arranged pursuant to a California Finance Lenders Law license No. 6053674. Offer of credit is subject to credit approval. For more information on our company, please visit cmg .com. To verify our complete list of state licenses, please visit cmg .com/corporate/ licensing and . Not intended to serve as a business solicitation for Massachusetts or New York. For mortgage professionals only.

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