To the Students from the Dec 10, 2013 LO CE class at Rockwell Bellevue

Hi Everyone,

Here’s the follow up from the LO CE class you attended.

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 2015 GFE/TIL 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.

Here  is a link to the website from our non-traditional lending case study: Net Life Financial.

I was skeptical when hearing about WalMart taking out life insurance policies on its employees.  But you were right.  It’s toward the bottom under “Taxes.” Seems they did so to exploit a tax loophole.  “Dead Peasant Insurance.”

There was a request for a link to HUD/RESPA on the rule that requires title insurance to be the choice of the home buyer (and not the seller.) Here you go.

Someone asked for the press release on U.S. v. Luther Burbank S&L, our Fair Housing Case Study for some light evening reading.

And finally  on our Mortgage Fraud module:

Emiel Kandi (The Loan Wolf)

Shawn Portmann 

The drug money case

Strong and Waldren

Thanks for coming to class everyone!