NEW TRID REAL ESTATE AND LENDING GUIDELINES
Thanks for connecting with me and Real Estate Mortgage Shoppe. Today we talked about what is TRID Know Before You Owe new real estate lending guidlelines, how it works and tips for getting through the loan process smoothly and quickly.
Our theme today was from NASA’s shuttle launches. In a way the lending industry has made some steps to explore new ways of doing business. Team efforts on the part of the borrowers, the lender, the title company and the realtors are sort of like the team efforts of NASA’s Mission Control, Launch Control, Operations Control and the individual astronauts.
If you are looking to buy a home or refinance one, you need an experienced loan officer, realtor and title company coordinating and helping you “launch” into our journey to buying your home or refinancing one that you already own.
I would like very much to be on your journey to reaching YOUR goals with your financing. If you have questions that are not answered here in this blog post or on our podcast, please connect with me and let’s find your answers. jo@192.232.195.219 www.JoGarner.com (901) 482-0354 Jo Garner
Good morning, Memphis! Good morning to American homeowners, borrowers and aspiring homeowners across the 50 states. You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. Join the conversation today, January 23rd, 2016 as we talk about “Lift Off- New TRID Real Estate And Lending Guidelines—All Systems Go.” Real Estate and Lending professionals have had a few months to discover new “best practices” for getting borrowers through the required government “Know Before You Owe TRID” methods of processing and closing mortgage loans. Today we’re going to explain what TRID is, how it affects homebuyers and borrowers and some of the best practices we have found to work, making the loan processing and closing smoother and quicker. If YOU want to join us while we are live, call the studio at (901) 535-9732 and outside the Memphis area 800 474-9732. If you’re on twitter, make your comments to #JoGarner or just shoot me an email at jo@192.232.195.219 You can also connect with me at www.JoGarner.com
In the studio today we have Joe Rojas, marketing representative for Fearnley, Martin and McDonald. Joe has over 15 years experience in the loan closing business and is very attentive to implementing systems and practices that smooth the way his clients. I can say he takes great care of MY clients. Joe take a moment to greet our listeners and tell us a little bit about yourself and what you do at Fearnley, Martin and McDonald law firm.
(Jo) Joe, I kind of felt like an astronaut in training throughout 2015 when we were getting ready for the Oct 3rd 2015 change over to the Know Before You Owe lending guidelines that went into effect Oct 3rd, 2015. These new lending rules were put in place by the Consumer Financial Protection Bureau with the primary purpose of consolidating some of the disclosure forms and slowing down the mortgage process so that consumers will have time to review the terms and make a more informed borrowing decision—hence the name “Know Before You Owe.” We’ve processed and closed several mortgages for our clients since fall of 2015 and will share today some best practices that we have found helps homebuyers and borrowers get to closing quicker and with less hassle.
But let’s take a moment to look at the trajectory of our mortgage market for the week January 18th through January 22nd 2016. During the last few days the stock market was showing heavy losses fueled by fear of repercussions from the situation with the Chinese economy and the drop in oil prices. And then yesterday the price on equities abruptly changed course and thrust upward pulling mortgage rates in tow. Even with yesterday’s course change, mortgage rates remain at a 2-month low closing out the day with the 30- year fixed rate around 3.875% to low 4’s; 15 year rates around low to mid 3’s. Call me for rates on the many other mortgage programs, including Veteran Loan program, the 100% physicians loan program, some special assistance programs and the jumbo loan program . The next big course change could occur next week with the Fed Announcement.
(Jo) I tend to think that a bunch of families made buying a home a New Year’s resolution because right after News Years, my phone started ringing. My cracker jack assistant, Susan Belew and I have been coming in early and staying late to make sure our clients feel the love from us and know we will get them safely to their destination. Lots of our clients are writing offers to buy homes and a larger percentage are refinancing. With rates dropping instead of gimballing in the opposite direction, I believe the winners in this market are people who have a 5% or higher mortgage rate refinancing and shortening their mortgage term with a much lower rate. Other winners are those who can lock in long term, LOW fixed mortgage rates BUYING a home. If you are stuck because you don’t have enough money to close, CALL ME. If you have been told you don’t have enough income to qualify , CALL ME on the air now at 901 535-9732 or after the show at 901 482-0354 or connect with me at www.JoGarner.com , especially if you are self-employed. I take the time and know how to find deductions that we can legally add back to your income. Today is the day to MAKE YOUR PLAN, WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
makes comments about the lending industry and how each loan is different and there is not a science to knowing the exact number when the loan is initiated because of changes in circumstances along the way
(Jo) I have to confess that I couldn’t wait to get to the radio station this morning. I have always been fascinated by rocket science and space travel. And today we’re talking about LIFT OFF — NEW TRID REAL ESTATE AND LENDING GUIDELINES-ALL SYSTEMS GO with the NASA theme- Some of my favorite movies like Star Wars and Matt Damon in The Martian just gets me excited about the possibilities we have of one day mining needed material from asteroids, new discoveries about black holes and dark matter and seeing other planets –even LIVING on other planets! In The Force Awakens and some of the earlier Star Wars movies and especially in The Martian our favorite characters are presented with seemingly impossible odds and yet they don’t give up but push through to win. I love the mortgage business too and it got me thinking this week at the correlation between rocket launches and the launch of new things in our financial industry. We are all on a mission into the future which is an unknown yet to be discovered. Just like when you set out to buy a house or get a mortgage—you consider where you want to go and consider lots of factors in getting there. You have to make your plan and then set out to make it happen. If the deal works for you today –do it today.
Joe Rojas and I are going to get into some best practices we have learned from our experience getting mortgages approved and closed for our clients under the new lending regulations so stay tuned to Real Estate Mortgage Shoppe.
2nd segment – (sherry to start the song “Taking Care of Business” by Bachman Turner Overdrive –but bring the volume down before the lyrics start) It’s time to talk shop with Talk Shoppe’s Business Bites for Real Estate Professionals. Talk Shoppe is a marketing company offering free education and networking to anyone interested in real estate or in business. Talk Shoppe is made possible by the financial support of its sponsors and advertisers. For more about Talk Shoppe, go to www.TalkShoppe.com (shoppe) For our Talk Shoppe Business Bite today we have Talk Shoppe advertiser, Pat Goldstein, realtor with Crye-Leike here in Memphis. Pat, you have been in a realtor for over 30 years in the Memphis area and have helped and educated so of us at Talk Shoppe with your wealth of real estate knowledge. What is our Talk Shoppe Business Tip for Real Estate Professionals today? (Jo says, “Thanks Pat Goldstein. You can reach Pat for more information at 901 606-2000)
QUESTIONS ANSWERED BY JOE ROJAS:
1. What are some of the challenges experienced by lenders and title companies and closers since the final Closing Disclosures are now being prepared first by the lenders instead of the title companies. What are some positive actions being taken to tighten up communication?
2. Joe, talk about some general good tips for mortgage borrowers for arriving at the closing table.
3. Joe covers some common title problems and how they fix them
4. Joe talks more about the new TRID regulated time lines for mortgage borrowers going through the loan process.
QUESTIONS ANSWERED BY JO GARNER:
1. What are some of the best practices that you and Susan are using for your mortgage team?
A. Before I even get started with the loan process, my assistant and I give our clients a short, written tutorial with tips on how what to do and what not to do in order to get through the loan process to closing in the quickest, smoothest journey. Tips reminding them about things they might already know but several tips that show them what to watch out for under the new guidelines. Its convenient like having GPS on your phone when you’re visiting a city for the first time.
B. I strongly suggest, if at all possible that our clients use email to transfer the official signed disclosures back and forth from my personal mortgage team to them and from them back to us. We have, short 2 to 3 step process that makes emailing the documents easier. Mailing documents back and forth still works but under the newer guidelines lenders are required to wait 3 business days for the documents to be officially delivered to the client before starting the mandatory count down from the delivery date through the 3 to 7 days wait time for the client to review the terms on the disclosures. It is much faster to use email so that you cut out the 3 days waiting for the disclosures to be delivered.
C. Other time savers is for the borrower to have his or her income and asset documents readily available before the countdown starts once the rate is locked in. My personal team and I offer to get written authorization from our clients so that we can help them pull these needed documents together if they don’t have time to get them to us. With written authorization we can help save our clients’ time by getting required income and asset documents from their tax accountants, bankers and mortgage holders and we can sometimes solve credit errors without too much demand on our client.
2. Talk about the mandatory wait periods required now under the TRID Real Estate Lending regulations.
3. The first mandated delay occurs when the borrowers officially receive the initial Loan Estimate disclosure. The lender has up to 3 days from the official loan application to send the Loan Estimate to the borrower. The borrower must be given seven full days (not including Sundays and holidays) to review this initial disclosure. The clock starts ticking toward the 7 days at the moment he or she electronically signs that they received the documents via email. If the electronic system is not used, the lender is required to mail within 3 days of the official loan application the Loan Estimate and allow 3 full days (not including Sundays and holidays) for the borrower to receive through the postal system. Then the 7 day wait period starts.
4. Other mandated delays require borrower to have a full 3 days to review the appraisal report before being allowed to close. After 3 days allowed for review of the appraisal, the earliest day to close would be on the 4th day.
5. Any Revised Loan Estimate, such as in the case of a “Changed Circumstance”, this disclosure must be received by the borrower no later than 4 days prior to closing. For example, if the borrower adds flood insurance to their home owners insurance plan changing the premium amount, then the lender is required to disclose the Revised Loan Estimate reflecting this “Changed Circumstance” within 3 days of the change. The borrower must have 3 days to review the changes.
-Once the loan is approved and the closing department has completed the Closing Disclosure for the borrower detailing the final details of the move-in costs, the borrower must be allowed to review the final Closing Disclosure for 3 full days (including Saturday but not Sundays and Federal holidays.) The dollar amounts on the itemized costs and final dollar amount needed to close, should close to the same numbers disclosed on the initial Loan Estimate or Revised Loan Estimate.
-If the loan program changes at the last minute or the closing costs amount or Annual Percentage Rate change over a certain percent, theT.R.I.D. guidelines require the lender to send a Revised Closing Disclosure to the borrower and wait out another 3 days once the borrower received the revised closing disclosure if the loan program changes after the numbers for the loan closing is delivered. Whew! Only the government could come up with THAT many rules. Work with an experienced lender, a realtor who knows the new rules and a good closer like Joe Rojas and you won’t have to remember how many days for this or that or who does what and when.
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REAL ESTATE TIP OF THE WEEK: (Joe has about 1.5 min or so to share a real estate related money-saving or time-saving tip)
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Announcements: This Wednesday January 27th, 2016, 9A-10A CT “The Mastermind Principle-based on the book Think and Grow Rich by Napoleon Hill.” Talk Shoppe offers networking and education to anyone interested in real estate or business every Wednesday 9A-10A at University of Phoenix in Memphis 65 Germantown Court 1st floor across from Germantown Parkway from the Ag Center. Talk Shoppe events are free for the next two months thanks to our sponsors and advertisers –one of which is Pat Goldstein, Realtor with Crye-Leike, Inc (901) 606-2000. For more about Talk Shoppe, go to www.TalkShoppe.com
FOR THIS PODCAST OF REAL ESTATE MORTGAGE SHOPPE AND MORE, GO TO JOGARNER.COM
Call me. MAKE YOUR PLAN, WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
Special thanks to Sonia Balcer, rocket scientist, for providing consultation on our NASA theme.
Special thanks to Nick Barnes, videographer testvideostudios@gmail.com
Quote Corner : — Bruce McCandless, first untethered spacewalk, during STS-41-B,
Feb 7, 1981
1. “May well have been one small step for Neil, but it’s a heck of a big leap for me!”
2. A joke reportedly written on a wall in a hall at NASA’s Jet Propulsion Lab, California, after losing contact with the Mars Polar Lander in December 1999.
“We have your satellite. If you want it back send 20 billion in Martian money. No funny business or you will never see it again.”
Transitional Music: “Countdown” by RUSH (with voice-overs from Kennedy Space Center with Shuttle crew)
REJOINERS:
Sonia Balcer, Rocket Scientist-Montrose, California
Pat Goldstein, Realtor with Crye Leike, Inc. (901) 202-6000
Jackie Woodside, author of Calming The Chaos, Marlborough, Massachusetts www.JackieWoodside.com
Nick Barnes-Videographer
Test Video Studios is a freelance videography studio that specializes in editing and consumer level online broadcasting. Test Video Studios also provides editing services for the local videography business, Storytellers. email is testvideostudios@gmail.com
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Talking Shop with Talk Shoppe’s Business Tip for Real Estate Professionals- Pat Goldstein (901) 606-2000, Talk Shoppe Supporter and realtor with Crye-Leike, Inc.
2006 MAAR Realtor Associate of the Year 2005 MAAR Presidential Award Recipient TAR Leadership Graduate Member National Association of Realtors
Life Member of the Multi-Million Dollar Club. Toastmasters Division Governor CBS (Certified Builder Specialist)
CRA (Certified Relocation Associate)
CRS (Certified Residential Specialist)
GREEN (Green Agent)
GRI (Graduate, Realtors Institute)
MMDC (Crye-Leike Multi-Million Dollar Club)
SRES (Seniors Real Estate Specialist)
SRS (Seller Representative Specialist)
Vice-President (Circle of Excellence)
ABOUT JOE ROJAS, Fearnley, Martin, and McDonald
(901) 289-5821
Joe Rojas has been in the title company business for over 15 years and has helped hundreds of clients have a smooth closing over the years.
ABOUT FEARNLEY, MARTIN, AND MCDONALD-
Fearnley, Martin & McDonald is Memphis law firm, providing quality, accurate and convenient settlement services in both Tennessee and North Mississippi. The partners, Michael A. Fearnley, Myra Q. Martin and W. Grady McDonald, have over 75 years of combined legal expertise.
Fearnley, Martin & McDonald’s extensive real estate practice provides a complete range of services from contracts to closing and title abstracts to title insurance. The firm’s real estate clients include realtors, brokers, developers, contractors, private investors, and homeowners.
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ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
www.JoGarner.com (901) 482 0354 jo@192.232.195.219 twitter @jogarner NMLS: 757308
Jo describes her job description:
Jo describes her job description: “As a mortgage loan officer, my job is to give my client the benefits they want from their financing terms– listening to my client and determine what’s of the most value to THEM– What is their comfort level on a house payment, how much are they comfortable paying down, what type of financing do they need to get the house they want to buy or refinance. Different clients have different priorities in life—some are buying their first home with very little down payment funds. Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income. Whatever their personal priorities are, my job is to put together a mortgage with comfortable terms that will help them achieve their goals.”
Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country. She offers conventional, FHA, VA or other loan programs for refinancing and purchases.
Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home purchase financing.
Jo Garner has been in the real estate/financing business for over 20 years. She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine and was personally mentored in San Diego, California by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge.
On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate. In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 20 years. Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients.
In addition to her work in the mortgage field, Jo Garner is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.com She was also the editor of Power Shoppe, a free weekly e-zine designed for real estate professionals and others indirectly connected to the real estate industry and currently publishes on her blog www.JoGarner.com .