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| TILA Policy |
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| TILA Quick Reference |
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| Task |
Timing |
Definitions |
| Order Appraisal |
4th business day after ClearPoint Funding sends the disclosure package to the borrower. ClearPoint Funding will email you when the disclosures are sent. |
Business days are defined as non-Federal holidays Monday through Saturday. |
| Final Fee Sheet |
Fee sheets will be sent to you upon approval. The best practice is to return this form to ClearPoint Funding at least 7 days prior to the scheduled closing date. A clear to close will not be issued until this form has been received and reviewed. |
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| Closing |
At least 7 business days after ClearPoint Funding discloses the initial package. Please note if there are any fee changes that impact the APR either up or down by more than .125 on a fixed rate loan or .25 on a variable rate loan it will require a re-disclosure to the borrower by ClearPoint Funding. there is an additional waiting period of 7 days for mailed disclosures or 3 days if there is verified email receipt and acknowledgement by the borrower. |
Business days are defined as non-Federal holidays Monday through Saturday. |
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| Mortgage Disclosure Improvement Act |
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| On May 8, 2009, the Federal Reserve Board approved final rules that revise the disclosure requirements for mortgage loans under Regulation Z, which implements the Truth-in-Lending Act (TILA). The revisions implement the Mortgage Disclosure Improvement Act (MDIA), enacted in July 2008 as amended by the Emergency Economic Stabilization Act of 2008 in October 2008. |
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| The final rule becomes effective July 30, 2009, and applies to applications taken on or after July 30, 2009. The application date is the date the creditor receives the loan application, not the date the broker receives the application. The creditor is the entity to whom the obligation is initially payable on the face of the note. |
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| Content of TILA Disclosures: The final rules make only one change to the content of the TILA disclosure. The disclosure must contain the following statement: "You are not required to complete this agreement merely because you have received these disclosures or signed a loan application." |
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| Timing and Delivery of Early TILA Disclosures: Under the new rules, three separate rules govern the timing of early TILA disclosures. |
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| Three Business Days after Application: The creditor (ClearPoint Funding) must deliver or mail early TILA disclosures no later than three "business days" after the creditor receives a consumer's written application. The general definition of a "business day" (Monday through Friday) applies for this purpose. ClearPoint Fundings's calendar reflects early TILA disclosures being mailed or delivered the same day the application was received. |
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| Imposition of Fees: Neither a creditor (ClearPoint Funding) nor any other person may impose a fee on a consumer in connection with the consumer's application before the consumer has received the early disclosure. The only exception to the fee restriction allows the creditor or other person to impose a bona fide and reasonable fee for obtaining a consumer's credit history. Additional fees maybe imposed after the consumer receives the initial disclosure. A consumer is considered to have received the disclosures when they are actually received or, in all cases, three "business days" after they are mailed. The definition of "business day" (all calendar days except Sundays and specified federal legal public holidays) applies for this purpose. |
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| If a broker submits a written application to a creditor (ClearPoint Funding), neither the creditor nor the broker may collect any fee, other than a fee for obtaining consumer's credit history, until the consumer receives the early mortgage loan disclosure from the creditor. |
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| Seven Business Day Waiting Period: The creditor (ClearPoint Funding) must deliver or mail the early TILA disclosures no later than seven "business days" before consummation. The seven "business day" waiting period begins when the creditor delivers the early disclosures or places them in the mail, not when the consumer receives or is deemed to have received the early disclosures. The more precise definition of "business day" (all calendar days except Sundays and specified federal legal holidays) applies for this purpose. The 7 "business day" waiting period applies even if corrected disclosure is provided three "business days" prior to closing. |
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| Re-Disclosure: If the APR disclosed on the early TILA disclosure becomes inaccurate prior to consummation, the creditor (ClearPoint Funding) must provide corrected disclosures with all changed terms. In general, the APR is considered accurate if is not more than one eighth of a percent above or below initial disclosure. Re-disclosure will be required if variance exceeds one eighth of a percent above or below initial disclosure. Changes that could cause the APR to become inaccurate include the addition of mortgage insurance, changes in loan program or loan amount, changes to fees, and other changes. |
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| The consumer must receive the corrected disclosures no later than three "business days" before consummation. The more precise definition of "business day" (all calendar days except Sundays and specified federal legal public holidays) applies for this purpose. If the creditor (ClearPoint Funding) mails the corrected disclosures or delivers them to consumer by means other than delivery in person, the consumer is deemed to have received the corrected disclosures three "business days" after they are mailed or delivered. Creditors that use electronic mail or a courier other than postal service may also follow this approach. The introductory comments to the rules make it clear that a creditor is not required to use the presumption of receipt to determine when the waiting period begins. The creditor may rely on evidence of actual delivery (such as documentation that the mortgage loan disclosure was delivered by certified mail or overnight delivery or e-mail (if similar documentation is available) to determine when the three "business day" waiting period begins. |
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| Waivers: ClearPoint Funding policy does not allow for waivers to these time periods. |
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| ClearPoint Funding will not fund loans that are not compliant with Mortgage Disclosure Improvement Act. |
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