Lines 1-5 Of the Pre-Qual
The Pre-Qualification Form is now required to be submitted in conjunction with the Residential Resale Real Estate Purchase Contract (Contract) at the time of offer.
If a buyer has not consulted with a lender when submitting a Contract, the buyer should simply check the box at line 3 and complete only lines 4-5.
Lines 6-31 Of the Pre-Qual
Changes that trigger a new three-business-day review period are:
- The APR (annual percentage rate) increases by more than 1/8 of a percent for regular loans (most fixed-rate loans) or 1/4 of a percent for irregular loans (most adjustable loans). A decrease in APR will not require a new three-day review if it is based on changes to the interest rate or other fees. Lenders have been required to provide a three-day review for these changes in APR since 2009.
- A prepayment penalty is added, making it expensive to refinance or sell.
- The basic loan product changes, such as a switch from fixed rate to adjustable interest rate or to a loan with interest-only payments.
The initial LSU must be delivered within “ten (10) days after Contract acceptance” instead of “five (5)” days
Lines 32-42 Lender Information
Require the lend to add there Arizona Licence # and NMLO#.
Loan Status Update LSU page 1
The initial LSU must be delivered within “ten (10) days after Contract acceptance” instead of “five (5)” days.
The reason for this is because TRID requires that a Loan Estimate must be completed by the lender and provided to the borrower three days after the borrower provides to the lender six pieces of information (loan application) And, because lenders have to abide by this timeframe, providing the LSU within five days of contract acceptance would prove very difficult.
Loan Status Update LSU page 2
Because of the new TRID requirements, page 2 of the LSU now identifies five additional steps in the lending process
1. The lender receiving the six loan application pieces of information from the buyer;
2.The lender sending the buyer the Loan Estimate;
3.The buyer indicating to the lender an intent to proceed with that lender;
4.The lender providing a Closing Disclosure to the buyer;
5.The buyer’s receipt of the Closing Disclosure from the lender
When must the buyer first deliver to seller a completed Loan Status Update?
What should a buyer do if their lender refuses to complete a Loan Status Update?
Line 39 of the Loan Status Update states “Buyer commits to work with the above referenced Lender on the terms described herein.” Is the term “commits to work with” synonymous with the term “intends to proceed” as used in 12 CFR §1026.19?