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 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.
Here is a link to the website from our non-traditional lending case study: Net Life Financial.
There was a question: How is buying leads similar/different than a Section 8 RESPA kickback? I found a great article published in a Bar Association magazine. Unfortunately there are no page numbers on the document so the best way to get right to the legal explanation of the author is to just do a keyword search for the word “lead” and it will bring you right to the section.
“…a mortgage originator can buy leads if the person selling the leads does not mention the name of, or do anything to influence the consumer to contact, the broker, lender or other settlement service provider. No endorsements, no hints, no nothing. The broker or lender does all the soliciting of the lead. There are several important caveats to buying leads, such as the requirement that financial institutions must maintain the confidentiality and security of non-public consumer information (with certain exceptions)….
There was a question about what is/is not included in the points/fees calculation for a QM. The CFPB continues to make revisions to the rules. Here is a good article summarizing their decision thus far.