BJ Bounds
As you know, HUD now requires initial disclosures within 3 days after the completed 1003 is submitted. In official terminology: A loan originator must issue a GFE no later than 3 business days after the loan originator receives an application or information sufficient to complete an application. Application is defined as the submission of a borrower‘s financial information in anticipation of a credit decision relating to a federally related mortgage loan, which shall include the following: (1) borrower‘s name, (2) borrower‘s monthly income; (3) borrower‘s social security number to obtain a credit report; (4) property address; (5) estimate of value of the property; (6) loan amount.
If you’re using Webcaster, you don’t have to worry about this timetable. Webcaster allows you to customize your on-line applications so that you have time to work with your client before completing the 1003 and generating the required HUD disclosures.
- From your administration page, go to Content>Loan Application>Configuration.
- Scroll down to Long Application as shown below.
- Under “Display the following sections,” de-select one of the choices. In the example below, I turned off #10-Real Estate, which is the section you put the Market Value of either the existing property being refinanced or the Market Value of the Subject Property being purchased. By turning this section off, it does not allow for the borrower to list any other property they may own, but of course a high majority of borrowers do not own 2nd homes or investment properties, so it’s an ideal option to remove but it still renders the 1003 officially incomplete.
Configuring Long Applications
Give yourself the gift of time. Give yourself Webcaster.
For more information, visit http://www.calyxsoftware.com/products/webcaster/index.asp or call 800-362-2599.
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Im confused: How many days do we need to wait after a changed GFE or TIL? Is there a difference in law between RESPA GFE of 2010 and the MDIA TIL of 2009?
Hi Sam. There is no time limit for allowed changes once the initial 3-day period has been met for the original disclosure. Just make sure you don’t run into the 3-day waiting period required before closing. The GFE is governed by HUD and the TIL is governed by the Federal Reserve so yes, the laws are different.
You can find more information on HUD’s FAQ site.