Hi Everyone,

Here’s the follow up from the LO CE class you attended in August:

There is a new case against a company for violating the steering provisions of the FRB Rule on LO Comp. Here’s the scoop.

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”

For branch managers, here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

If anyone is interested in using these upcoming 2014 changes to be a trusted advisor w/your Realtors, here’s the new 2014 combined GFE/ TILA and also the new HUD 1. I think it would be helpful to Realtors to know about this change.

Here’s a link to the CFPB website with more info on all the Dodd-Frank rules and when they will go into effect.

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 information on how the UST will be scored. Here is a link to the main UST pagewithin the NMLS Resource center. And here’s the direct link to the scoring method.

I mentioned Seattle hip-hop artist Macklemore in class today…. This is the event I attended with my teenage daughter on Aug 12th.

http://www.acttheatre.org/Tickets/OnStage/CRWNAconversationwithElliottWilsonandMacklemore

Thanks for coming to class!