To the Students from the May 15, 2013 Guild Mortgage LO CE class in Bellevue

Hi Everyone,

Here’s the follow up from today’s class.

Here’s the article I wrote about NACA as published on Seattle Bubble. NACA is the org that’s bringing their zero down loan to town soon.

Here is a link to the CFPB Consumer Compliant database. There’s a menu running across the page, not at the top but near the top. It’s inside a gray table.  It says “Data By Product.”  For the dbase we played around with, click on “mortgages” and have fun geeking out with the data!

Here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

Here’s the new 2014 combined GFE/ TILA and also the new HUD 1

Q: How is the Total Interest Percentage on page 3 of the new GFE calculated?
A: The Total Interest Percentage disclosure is mandated under Section 1419 of the Dodd Frank Act so the CFPB does not have the option to exclude it.

First figure out the total interest paid over the life of the loan as follows:
Principal and Interest x the loan term
761.78 x 360 = $274,241.

Now take the total interest paid over the life of the loan and subtract out the principal amount of the loan:
$274,241. – 162,000 = $112,241.

$112, 241 represents the total interest paid over the life of the loan.
Now take the total interest paid over the life of the loan and divide by the principal loan amount:

112,241 / 162,000 = 69.28%

This doesn’t quite match the GFE example given to us by the CFPB. So what’s missing? Prepaid interest. Add that in as part of the interest and your math should match.

There was a request for an update on the local real estate fraud case against Michael Mastro. There are so many interesting news stories I think it might be fun for you to scan the headlines so just google “Michael Mastro” fraud crime seattle 2013″ and you’ll see several interesting headlines

There was also a request for an update on what’s happening, if any to build a case against Kerry Kilinger of failed bank WaMu. This is the latest story I could find.

Statement by Jillayne: Mortgage closing costs actually decreased since the introduction of the 2011 GFE, replacing the old 1974 form.  Here is the link to one of several different articles that explained just what one you said….lenders got more accurate with their GFEs.