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.
Loan Estimate (LE) Delivery
The Consumer Financial Protection Bureau (CFPB) issued a rule that will simplify and improve disclosure forms for mortgage transactions, which is effective October 3, 2015.
The new mortgage disclosures being introduced are called the Loan Estimate (LE) and the Closing Disclosure (CD).
First New Form: The Loan Estimate (LE)
The first new form, the Loan Estimate (LE), is designed to provide disclosures that will help consumers understand the key features, costs, and risks of the mortgage loan for which they are applying. This form will be provided to consumers within three (3) business days after they submit a mortgage loan application. The Loan Estimate(LE) form replaces two (2) current Federal forms. It replaces the Good Faith Estimate and the “Initial” Truth-in-Lending Disclosure.
View a sample of the Carrington disclosed Loan Estimate: Click Here
View a sample of the Broker disclosed Loan Estimate: Click Here
Loan Estimate Process
Carrington Mortgage Services, LLC (CMS) will not accept LE’s prepared by the broker or other lenders. The Broker must submit the application by12pm (Operation Center time zone) on the second business day of signing the 1003. CMS will accept or deny the submission and issue the LE on behalf of the Broker within one (1) business day of receipt.
CMS will deliver the LE through an eDelivery method to all borrowers on the transaction. The borrower(s) must consent to eDisclosure delivery by executing an eConsent form prior to opening the eDisclosure package.
If after 3 general business days, the borrower(s) has not consented to eDelivery, CMS will mail the disclosure package to the borrower(s).
If the borrower(s) does not have ability to accept eDisclosures, CMS will mail the disclosure package on the first general business day. The Broker MUST alert CMS in these cases.
The Second New Form: The Closing Disclosure (CD) Form
The second form, the Closing Disclosure (CD), is designed to provide disclosures that will help consumers understand all of the costs of the transaction. This form will be provided to consumers three (3) business days before they close on the mortgage loan (applies to purchases and refinance transactions). The Closing Disclosure (CD) form replaces two (2) current Federal forms. It replaces the HUD-1 and the “Final” Truth-in-Lending Disclosure.
View a sample Closing Disclosure: Click Here
Compare the current process with the new process with this chart: Click Here
Next, check out information on the Collection of Fees & Appraisal Orders
Contact your Account Executive with any questions regarding this information.