Page 18 - The eTRID Guide by Chicago Title

Five Things Attorneys Need to Know Before October 2015

Straight talk about the new CFPB regulations and forms.

3. How Will the Timing Of a Closing Be Impacted By After delivery of the initial Closing Disclosure changes may
Closing Disclosure Delivery? require a re-disclosure and new waiting period:
As part of the final rule creating these two new combined • Increase of APR by greater than 1/8%
forms, the CFPB determined that borrowers would be better • Change in loan program such as Fixed rate to ARM
served by having a short time to review the new Closing • Addition of pre-payment penalty after the initial
Disclosure prior to signing their loan documents. As a result,
the Rule requires borrowers have three days after receipt of disclosure
the Closing Disclosure to review the form and its contents
prior to signing loan documents. 4. How Will the Communication of Fees and Figures
Be Handled (Proration, Credits, etc.)?
However, note that the three-day review period starts upon Lenders will continue to need accurate estimates of
“receipt” of the form by the borrower. Unless some positive title and settlement fees for the preparation of both the
confirmation of the receipt of the form (i.e., hand delivery), Loan Estimate and Closing Disclosure. In addition, for
the form is “deemed received” three days after the delivery transactions in which an owner’s policy will be purchased,
process is started (i.e. mailing). As a result, the combination the rule prescribes special mathematical calculations
of the “delivery time period” and the “review time period” for disclosure of the owner’s and lender’s title insurance
results in six business days from mailing to loan signing. premiums, which may require receipt of rates for both a
stand-alone and simultaneously-issued lender’s policy, as
Example Closing Calendar well as the owner’s policy rate. We are modifying our online

Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1 4 5
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8 Delivery of Closing Three-day waiting period
waiting cont. Three-day delivery period Disclosure Occurs

Sunday not Non-hand Delivery of Closing Disclosure
counted (i.e. mail)

9 10 11 12 13 14

First day Three-day right of rescission First day
signing / closing disbursement
may occur (Applicable to most re nances) may occur
on most
First day re nances
disbursements may
occur for purchase
and some
re nances

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