1

RESPA/TILALooking Ahead to October 2015

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

2

RESPA/TILA

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

The Consumer Financial Protection Bureau (CFPB) finalized amendments to Reg X and Reg Z

to integrate the Truth in Lending (TILA) and Real Estate Settlement Procedures Act (RESPA)

disclosures effective with loan applications dated October 3, 2015.

The CFPB is now referring to the rule change as TRID (TILA-RESPA Integrated Disclosure.)

3

RESPA/TILATILA-RESPA Integrated Disclosure (TRID)

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

OVERVIEW:

– Combines initial Truth-in-Lending disclosure (E TIL) and Good Faith Estimate (GFE) into one LOAN ESTIMATE (LE) disclosure

– Combines final Truth-in-Lending disclosure and HUD-1 Settlement Statement into one CLOSING DISCLOSURE (CD)

– Creates new timing requirements for receipt of CLOSING DISCLOSURE– Applications taken October 2, 2015 and before will continue with the

current GFE, TIL, and HUD 1 Settlement Statement no matter the closing date.

4

RESPA/TILA New Documentation

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

Loan Estimate Disclosure

The Loan Estimate was designed to provide

consumers helpful information in

understanding key risks, costs, and features of

the mortgage for which they are applying.

5

LOAN ESTIMATE DISCLOSURENew Documentation

Loan Estimate Page 1

The new Loan Estimate will make it easier for consumers to locate key information, including the interest rate, monthly payment, and cost to close the loan.

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

6

LOAN ESTIMATE DISCLOSURENew Documentation

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

7

LOAN ESTIMATE DISCLOSURENew Documentation

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

Loan Estimate Page 3

Total amount of interest the borrower will pay over the life of the loan, expressed as a percentage.

Example:

$100,000.00 Loan Amount$50,000.00 InterestTIP= 50%

8

RESPA/TILA New Loan Closing Procedure

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

New Loan Closing Procedures

9

CLOSING DISCLOSURENew Documentation

Closing Disclosure Page 1

Page 1 of the Closing Disclosure mirrors page 1 of the Loan Estimate.

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

10

CLOSING DISCLOSURENew Documentation

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

Closing Disclosure Page 2

Gone are uniform sections:• No more 700-1400 series

Fees and charges listed alphabetically under• Loan costs• Other costs

Real Estate commission fees shown underH. Other

Example:

Real Estate Commission toABC BrokerCDE Broker

Actual Fee shown in seller column

11

CLOSING DISCLOSURENew Documentation

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

Closing Disclosure Page 3

• Top portion compares Loan Estimate to Closing Disclosure costs

• Similar look to old HUD 1

12

CLOSING DISCLOSURENew Documentation

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

13

CLOSING DISCLOSURENew Documentation

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

Closing Disclosure Page 5

Contact information for all critical non-seller participating parties associated with the transaction to allow the consumer easier access to the information.

14

NEW LOAN CLOSING PROCEDUREPreparation of Closing Disclosure

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

The Closing Disclosure integrates and replaces the Final Truth-in-Lending disclosure and the RESPA HUD-1 Settlement Statement.

Three possible options:

1. Lender Preparation

2. Attorney Preparation

3. Dual effort between Lender and Attorney

Who Prepares the Closing Disclosure?

15

Consumer Receipt of Closing Disclosure

Consumer must receive the Closing Disclosure no later than three precise business days before consummation. (Seller may receive Closing Disclosure at or before closing)

NEW LOAN CLOSING PROCEDUREConsumer Receipt of Closing Disclosure

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

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Sun. Mon. Tues. Wed. Thurs. Fri. Sat.

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Holida

y!

• Consumer receives CD on Monday. Closing may occur on Thursday.

• Consumer receives CD on Thursday. Closing may occur on Monday

• Consumer receives CD on Monday (Tuesday is a Federal Holiday.) Closing may occur on Friday.

NEW LOAN CLOSING PROCEDUREConsumer Receipt of Closing Disclosure

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

17

Changes that would require a closing date to be rescheduled

• Disclosed APR is no longer within tolerance

• Loan product changes• Prepayment penalty added

NEW LOAN CLOSING PROCEDUREClosing dates

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

18

NEW LOAN CLOSING PROCEDURETransition to new disclosures

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

Transition to the new Closing Disclosure

All applications taken

October 2, 2015 and before continue with current GFE, TIL

and HUD-1, regardless of closing date.

19Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998

CUNNINGHAM & COMPANY PROVIDES:• A quick application to approval process (Cunningham &

Company Buyer Ready Program)

• Communication with Borrowers and Realtors during the loan process (Cunningham & Company Touch Points™)

• Delivery of closing package to attorney well in advance

• Effective Lender/Attorney relationships and communication

• Flexibility to react to change on the new Closing Disclosure to protect closing dates.

20

Cunningham & CompanyMortgage Bankers

The Reputation You Trust. The Flexibility You Need.

Cunningham & Company is a trade name for CMC Funding, Inc. NMLS ID#41998