Types of Disclosure Documents (and Why They Matter)
Mortgage loan originators, do you feel like your interactions with your title companies are an endless game of paper and details – especially at month-end? We believe the loan application process and closing should be easy.
We all know the end of the month closings (settlements) can be a time full of stress. As your borrowers’ clamor to close within the last two weeks of the month, it can make for a very busy and stressful time for loan officers. If you’re struggling to adequately keep up with demand, it not only hurts your company financially, but it can also affect your reputation.
Just imagine if you could scale up your production, increase your financial outcome, all while reducing your overhead and stress, and still staying focused on your clients. With the right partners in place to help you, that can be a reality. Let’s discuss disclosure documents…
Dealing with Disclosures & Keeping Up with Demand
Throughout the loan application process, there are many types of loan disclosure documents. Disclosures are a type of document in which you—the lender—are obligated to be completely transparent about all the terms of the mortgage agreement you are offering to your borrowers.
Since the information provided to your borrowers happen at different times throughout the mortgage transaction, the disclosures are spread out accordingly.
AT THE TIME OF THE LOAN APPLICATION
When your borrower applies for a loan, there are several documents you need to have on hand. Within 3 days of your borrower applying for their mortgage loan, lenders need to provide them with a loan estimate.
The loan estimate is a part of a newly revised mortgage disclosure that combines four different forms into the TILA-RESPA Integrated Disclosure (TRID. The Loan Estimate, now part of the TRID, combines the previous Truth-In-Lending Statement and the Good Faith Estimate. The Loan Estimate helps the borrower understand the risks and the costs of the mortgage on their new home purchase or refinance.
DISCLOSURES AT SETTLEMENT
Three days before closing, your borrowers will receive the other half of the TRID, the Closing Documents. Included in these disclosures are the HUD-1 Settlement and the final Truth-In-Lending Statement.
These are similar to the first documents that went out at the beginning of the loan application process, but instead of giving an estimate of the costs that would be incurred, they now tell the client the actual costs.
The Closing Disclosure is a five-page form that includes the loan terms, projected monthly payments, and closing costs.
Related > Mobile Closings: Close Anytime, Anywhere
ADDITIONAL MORTGAGE DISCLOSURES
As you know, in addition to the Loan Estimate and the Closing Disclosures there are a lot of other small, yet significant, mortgage disclosures that will need to be properly filled out, accounted for, and filed on time.
By allowing, True Concept Title to handle your disclosures, this is an extra headache you do not have to worry about.
- Appraisal Report Disclosure
- ARM Rider
- Attorney Selection Notice
- Authorization to Release Information
- Consumer Privacy Policy Notice
- Escrow Account Waiver
- Fair Credit Reporting Act Notice
- IRS Forms W-9 and 4506-T
- Name Affidavit
- Servicing Disclosure
- Tangible Net Benefit Worksheet
Additionally, there are some government loan disclosures if your client has a government-backed loan:
- FHA Informed Consumer Choice Disclosure Notice
- Important Notice to Homebuyers
- HUD/VA Addendum to Uniform Residential Loan Application
- For Your Protection: Get a Home Inspection
- HUD Appraised Value Disclosure
- HUD Amendatory Clause
As a mortgage lender, you know just how many disclosure documents there are to keep up with and how important timing truly is to each one. At True Concept Title, we know this too.
That’s why we offer your loan officers a one-stop-shop portal that allows for a cohesive point of data exchange. Through this platform, your loan officers will save hours off of the lending workflow as well as courier costs. This will in turn allow your company to focus on more mortgages. Contact us today at 813-263-7168 to speak with our national title and escrow experts.
Let Us Help Process Your Loan Documents
We are here to help you be more successful and allow you to focus on your borrowers and not the software. We all want them to be able to call a place home or to have the funds to make changes they need to by refinancing.
Whether your business needs help with loan document processing, payoff ordering, file funding, or loan disbursements, True Concept Title can help your mortgage business no matter what state you are located in. Our national title company also offers full escrow processing. Our centralized escrow division will help your business throughout the entire process.
Call our Tampa, FL based title company at 813-263-7168 to see how we can streamline your workflow when it comes to processing loan documents and disclosures.
