Bulletin W1284 - Anti-Steering Disclosure Process

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:
• Steve Netter
  Director of Compliance
  949-517-6139
  Steve.Netter@carringtonms.com

Download:

• Bulletin - #W1284 (PDF)
• Checklist for Broker Submitted Anti-Steering Loan Options Disclosure
• Anti-Steering Disclosure of Loan Options