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.
Online rate calculators for title and escrow services have become indispensable tools for loan originators over the last couple years. Why? Because a higher degree of accuracy is now required when loan originators disclose settlement fees to consumers on the Good Faith Estimate or GFE. And with settlement fees falling into three tolerance categories it’s critical for loan originators to know that the fees quoted by the title insurance and escrow provider will be accurate and won’t change by more than 10%.
Calculate rates for your GFE instantly! Try out the free title and escrow rate calculator today! Click here to try it now at TicorRates.com!
Therefore as a service to our clients Ticor has created an easy to use, online rate calculator. View the calculator at http://ticorrates.com to try it out today!
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No need to log in
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Quotes are valid for 60 Days
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A quick review of the GFE and HUD-1 Settlement Statement Changes
Last year significant changes were made to RESPA’s two primary disclosure forms (GFE and HUD-1 Settlement Statement) for the purpose of ensuring more timely and effective disclosures of the settlement costs of residential mortgage loans. One of the major changes was the addition of a third page to the HUD-1 which facilitates a side-by-side comparison of the settlement charges listed on the Good Faith Estimate vs. actual charges on the HUD-1 settlement statement. In addition, the new HUD-1 makes it easier for lenders and settlement agents to identify tolerance violations with the settlement charges.
Charges that cannot increase on the HUD-1 Settlement Statement
Adjusted origination charge
Charges that cannot increase in total by more than 10% on the HUD-1 Settlement Statement
Any other required services that are provided by a company identified by the loan originator
Charges that can increase on the HUD-1 Settlement Statement:
The initial escrow deposit
Daily interest charges
Any required services consumers purchase from providers not identified by the loan originator
What do you think? Is this calculator a time saver for your business?