Carrington Wholesale Lending

Bulletin W1284 – Anti-Steering Disclosure Process

October 1, 2012Bulletins

This bulletin is about the Anti-Steering Disclosure process.

  • CMS requires that the Broker provide the Anti-Steering Disclosure effective immediately on Lender Paid transactions
  • If the disclosure is not included at time of submission the Underwriter will condition the loan appropriately as  PTD condition
  • The Safe Harbor Certification will no longer be a required document
    • The Submission Forms have been updated and will be posted to the website on Monday October 1, 2012
  • The Underwriter and Account Manager must monitor the file in the event that the loan moves from Borrower Paid to Lender Paid to ensure compliance
  • The Anti-Steering Disclosure must contain:
    • Form must be entitled Anti-Steering Loan Options Disclosure
    • Must be signed by all borrowers listed on the Note and must be presented to the borrower(s) at the time the Loan Originator has sufficient information to complete the disclosure
    • Must contain the following options:
      • The loan with the lowest interest rate
      • The loan with the lowest interest rate without negative amortization, a prepayment penalty, interest only payments, a balloon payment in the first seven years of the life of the loan, a demand feature, shared equity or shared appreciation.
      • The loan with the lowest total dollar amount of origination points or fees and discount points
    • The loan options must be an accurate reflection of the circumstance at time of disclosure
    • The Broker is required to disclose loan options for each “type of transaction” in which the consumer expressed an interest.
    • When completing the disclosure the Broker needs to present loan options for which the consumer likely qualifies and include loan options from a significant number of lenders which the Broker regularly does business with.
  • A sample Anti-Steering Disclosure has been created and is posted to the website and can be found at:
    • Broker Center/Documents and Forms/Useful Forms
    • Form is PDF fillable
    • The posted Anti-Steering Disclosure is a sample only
    • To ensure that the Broker’s Anti-Steering Disclosure meets all of the requirements and internal CMS Checklist has been created and provided to Associates
  • Subject Matter Expert:

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