New Mortgage Rules and Guidelines | SunTrust Mortgage

New Mortgage Rules & Guidelines

Frequently Asked Questions

What is changing and why?

The Consumer Financial Protection Bureau (CFPB) is responsible for making rules that apply to the mortgage loan process. Tila Respa Integrated Disclosures (TRID) refers to new rules meant to protect you as a consumer. These new rules will go into effect on October 3, 2015.

What does TRID do for you?

When going through the mortgage loan process, clients often receive their final numbers at the last minute and feel pressured to sign without fully understanding multiple documents that explain their loan terms and costs. With TRID, you will now receive a Closing Disclosure at least three days before the closing. This disclosure replaces the Housing Urban Development (HUD-1) and final Truth in Lending (TIL) documents. It also will provide key details about loan terms, estimated costs and cash needed to close in a single document. Once received, you will have three (3) days to review your Closing Disclosure which will assist in empowering and better preparing you to close with confidence.

What are the main components of this change?

  • Within three (3) days after your application, you will be sent a Loan Estimate, which will show a consolidated snapshot of your loan terms and estimated fees.
  • You will review the Loan Estimate and notify your lender of your intent to proceed with the loan. Lenders will typically start processing the loan after receiving this intent to proceed and any upfront fees. Lenders can void the Loan Estimate if this intent to proceed is not submitted within ten days.
  • At the end of the loan process, at least three days before closing, you will receive a Closing Disclosure document from your lender. This document will replace TIL and HUD1. This new document is straightforward, making it easier for you to compare figures in the Closing Disclosure to those in the Loan Estimate. The Closing Disclosure shows the actual terms and costs of the loan, and exactly how much money is needed for the closing.

 

Will this change cause delays to closing?

There may be changes during the mortgage loan process that may require revisions to the Closing Disclosure. A simple revision may not delay the closing, but if the change is significant (i.e. increase in APR, changes to the loan product, addition of prepayment penalty), then a revised Closing Disclosure and a new three (3) day waiting period will be required. A dedicated Mortgage Loan Specialist will provide home buyers with details throughout the mortgage loan process.

Refinancing? What can you do to help your refinance loan close on-time?

Your loan officer and title company will work together to do their part in helping you close on-time. Here are a few tips for how you may help the financing process:

  • Collect income and asset documentation
  • Consult a loan officer to evaluate loan options
  • Sign up for electronic disclosures from lender
  • Review Loan Estimate
  • Submit intent to proceed and any initial fees to the lender
  • Get all requested documents to lender within 24-48 hours of request
  • Immediately inform loan officer if you need to change your loan terms

 

Purchasing? What can you do to help your purchase loan close on-time?

Your loan officer, real estate agent and title company will work together to do their part in helping you close on-time. Here are a few tips for how you may help the financing process before you sign the purchase agreement:

  • Collect income and asset documentation
  • Consult a loan officer to evaluate loan options
  • Sign up for electronic disclosures from lender
  • Secure a pre-qualification(1) or pre-approval (2)
  • Shop for home insurance and home inspection

Here are a few tips for how you may help the financing process after you sign the purchase agreement:

  • Get the home inspection done as soon as the purchase agreement allows
  • Set a realistic and firm closing date
  • Shop for homeowners insurance
  • Submit purchase agreement and all addendums to loan officer as soon as possible
  • Submit updated income and asset documentation
  • Review Loan Estimate
  • Submit intent to proceed and any initial fees to the lender
  • Get all requested documents to lender within 24-48 hours of request
  • Immediately inform loan officer of any changes to the purchase agreement

 

DISCLAIMERS

1 Pre-qualification is based on non-verified information and is not a commitment to make you a loan by SunTrust Mortgage, Inc. Loan approval will be subject to, but not limited to, verification of all income, asset and liability information provided by you, satisfactory property appraisal, compliance with SunTrust Mortgage’s loan program guidelines and all required closing conditions such as survey and title examination.

2 Pre-approval is based on information provided by borrower and credit reporting agencies, and final loan approval will be subject to verification of no change to borrower’s credit history or financial condition, identification of a property acceptable to SunTrust Mortgage, and satisfaction of all required closing conditions such as a survey and/or title examination. Pre-approval is only valid until the expiration date stated on the Pre-approval letter.

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