To the Students from the LO CE class on May 21, 2013 at Guild Mortgage Kent

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”

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.

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 question about the stand alone UST:
Q: If I take the UST can I just let those test results sit there on the shelf as having “passed” and then make up my mind to activate my license in one or all of those states (that recognize the UST) at a later date?

A: I answered that you’d have to license right away….but I was only 98% sure of my answer and I like to be 100% sure so I asked the NMLS this question last night and they responded. here is her response:

“Hi Jillayne Per the 5 Year Test Retake rule in the SAFE Act: Test results do not expire, unless an MLO fails to maintain (or achieve) a valid license in at least one state or Federal registration for a period of five years or more.  More on this will be coming next year as that is when this rule will be become relevant.”

So that means after you pass the stand-alone UST you will need to activate the license in at least one additional state within 5 years of having passed the test. This matches the 5 year test-retake rule in the SAFE Act.