This material is for informational purposes only as a service to brokers who do business with Carrington Mortgage Services, and it should not be relied upon as legal or compliance advice. The information represents the best practices for doing business with Carrington Mortgage Services at the time of preparation, and it is subject to change without notice. Copyright 2015. Carrington Mortgage Services, LLC. All rights reserved. Reproduction or distribution is prohibited.

Following is a summary of changes for TRID and the New Submission Requirements.

Lender Disclosed LE Submission Requirements

  • Must receive the Intent to Proceed prior to Charging Fees (except credit report)
  • Carrington must receive the submission by 12pm (local time) on day two (2) after the application to guarantee timely disclosure
  • CMS sends LE and Intent to Proceed to borrower for signatures
  • CMS requires signed LE and Intent to Proceed from the borrower prior to ordering the appraisal (MDIA compliance)
  • Brokers should obtain e-mail addresses for eSign

Broker Disclosed LE Submission Requirements

  • Broker MUST complete the Loan Estimate (LE) as follows:
  • Lender name on Loan Estimate (LE) must be blank
  • All fees must be accurately disclosed and disclosed in the correct category. CMS will not accept any submissions containing errors on the LE
  • The Broker’s LE and Intent to Proceed must be dated within three days of the initial 1003
  • Taxes and Insurance impound accounts must be disclosed accurately
  • Only Borrower Paid Broker compensation will be disclosed on the LE
  • With the exception of interest rate specific origination credits, no additional credits can be disclosed on the LE
  • Broker’s and Broker’s Loan officer’s license numbers and NMLS IDs must be accurately disclosed on page 3 of the LE

Assumption information must be completed as follows:

  • For FHA and VA loans, the LE must indicate assumptions are allowed under certain conditions
  • For USDA loans, the Loan Estimate must indicate assumptions are not allowed

Late Charges must be completed as follows:

  • For all states, except New York and Rhode Island – Late charge must equal 4% of the principal and interest due and the grace cannot be less than 15 days
    • For New York, the late charge will equal 2% with a 15 day grace period
    • For Rhode Island, the late charge will equal 3% with a 15 day grace period

Servicing Transfer Notice must indicate that Broker will transfer Servicing of the loan

Broker Disclosed LE Approval Requirements

Broker must be approved by Carrington Mortgage Services, LLC prior to submitting a loan package that includes a Broker issued Loan Estimate (LE).

The Broker must complete the RESPA/TILA Integrated Disclosures Broker requirement questionnaire to determine eligibility.  – Click

Required documentation to be submitted with questionnaire:

  • Samples of at least three (3) recently issued Loan Estimates (LE)
  • Fee validation procedures
  • Fee collection policy

Transferred Loan Estimates (LE) Requirementsclick for form

  • A letter of explanation detailing the reason for the transfer will be required
  • All fees must be accurately disclosed and disclosed in the correct category.  CMS will not accept any submission containing errors on the LE
  • The Broker’s LE and Intent to Proceed must be dated within three (3) days of the initial 1003
  • Taxes and insurance impound accounts must be disclosed accurately
  • Only Borrower Paid Broker compensation will be disclosed on the LE
  • With the exception of interest rate specific origination credits, no additional credits can be disclosed on the LE
  • Broker’s and Broker’s Loan Officers/license numbers and NMLS ID’s must be accurately disclosed on page 3 of the LE

Assumption information must be completed as follows:

  • For FHA and VA loans, the LE must indicate assumptions are allowed under certain conditions
  • For USDA loans, the LE must indicate assumptions are not allowed

Late Charges must be completed as follows:

  • For all states, except New York and Rhode Island – Late charge must equal 4% of the principal and interest due and the grace period cannot be less than 15 days
    • For New York, the late charge will equal 2% with a 15 day grace period
    • For Rhode Island, the late charge will equal 3% with a 15 grace period

Servicing Transfer Notice must indicate that Broker will transfer servicing of the loan

Next, Review the Submission Process – Workflow

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