Rules in April 2024 Release

Federal

ECS has created new rules related to the disclosure of fees according to regulatory requirements outlined in CFR 1026.37(f)(1)-(3), 12 CFR 1026.37(g), 12 CFR 1026.38(f)(1)-(3), and 12 CFR 1026.38(g). Users who opt-in to this new functionality may submit loans to the TILA-RESPA Review and receive new FAIL status messages if fees are designated as paid to inappropriate payees, based on specified sections of the Loan Estimate or Closing Disclosure (Sections A, B, C, E, and F) in which the fee was disclosed.

Opt-in Option for Disclosed Fee Section Rule Messages

If you want to opt-in to Disclosed Fee Section Rule FAIL and PASS status messages, you will need to open an ICE Mortgage Technology Customer Support ticket to request the addition of the appropriate parameter into the designated Service Group (TILA-RESPA Review) to invoke the new Disclosed Fee Section Rules. Customer Support will provide further instructions upon review of the request. If necessary, Customer Support will create a new custom Service Code for you.

Opt-in Option for Warning Status Message

If you would prefer to receive WARNING status messages instead of FAIL status messages, you will need to open an ICE Mortgage Technology Customer Support ticket to request the addition of the appropriate parameter into the designated Service Group (TILA-RESPA Review) to modify the FAIL status response message to a WARNING status response message within the respective rules' service group. Customer Support will provide further instructions upon review of the request.

Federal - Integrated Disclosure Section A Origination Charges

Section A Origination Charges Paid To Affiliate(1001432)

There are no fees paid to an affiliate disclosed under Section A "Origination Charges". Under Regulation Z, charges included under the subheading "Origination Charges" on the Loan Estimate and Closing Disclosure are those charges paid to the creditor and the mortgage broker (if applicable) for originating and extending the credit. (12 CFR 1026.37(f)(1); 12 CFR 1026.38(f)(1))

Section A Origination Charges Paid To Affiliate(1001432)

There are ($_) of fees paid to an affiliate disclosed under Section A "Origination Charges". Under Regulation Z, charges included under the subheading "Origination Charges" on the Loan Estimate and Closing Disclosure are those charges paid to the creditor and the mortgage broker (if applicable) for originating and extending the credit. (12 CFR 1026.37(f)(1); 12 CFR 1026.38(f)(1))

Section A Origination Charges Paid To Provider(1001432)

There are no fees paid to a third-party provider disclosed under Section A "Origination Charges". Under Regulation Z, charges included under the subheading "Origination Charges" on the Loan Estimate and Closing Disclosure are those charges paid to the creditor and the mortgage broker (if applicable) for originating and extending the credit. (12 CFR 1026.37(f)(1); 12 CFR 1026.38(f)(1))

Section A Origination Charges Paid To Provider(1001432)

There are ($_) of fees paid to a third-party provider disclosed under Section A "Origination Charges". Under Regulation Z, charges included under the subheading "Origination Charges" on the Loan Estimate and Closing Disclosure are those charges paid to the creditor and the mortgage broker (if applicable) for originating and extending the credit. (12 CFR 1026.37(f)(1); 12 CFR 1026.38(f)(1))

Section A Charge Labeled as Not a Required Service(1001432)

There are no fees disclosed under Section A "Origination Charges" designated as "Non-Required", "Optional" or "Other" charges. Under Regulation Z, charges included under the subheading "Origination Charges" on the Loan Estimate and Closing Disclosure are those charges paid to the creditor and the mortgage broker (if applicable) for originating and extending the credit. Charges in connection with the transaction for services that are required or obtained in the real estate closing by the consumer, the seller, or other party and designated as a "Non-Required" or "Optional" would be disclosed in Section H "Other". (12 CFR 1026.37(f)(1); 12 CFR 1026.38(f)(1); 12 CFR 1026.37(g)(4); 12 CFR 1026.38(g)(4))

Section A Charge Labeled as Not a Required Service(1001432)

There are ($_) of fees disclosed under Section A "Origination Charges" you have designated as a "Non-Required" or "Optional" Service. Charges in connection with the transaction for services that are required or obtained in the real estate closing by the consumer, the seller, or other party and designated as a "Non-Required" or "Optional" would be disclosed in Section H "Other". Under Regulation Z, charges included under the subheading "Origination Charges" on the Loan Estimate and Closing Disclosure are those charges paid to the creditor and the mortgage broker (if applicable) for originating and extending the credit. (12 CFR 1026.37(f)(1); 12 CFR 1026.38(f)(1); 12 CFR 1026.37(g)(4); 12 CFR 1026.38(g)(4))

Federal - Integrated Disclosure Section B Cannot Shop/Did Not Shop Fees

Section B Cannot Shop/Did Not Shop Fees Paid To Lender(1001433)

There are no fees paid to the lender disclosed under Loan Estimate Section B "Services You Cannot Shop For" or Closing Disclosure Section B "Services Borrower Did Not Shop For". Under Regulation Z, charges included under Section B on the Loan Estimate and Closing Disclosure are charges the consumer will pay for settlement services for which the consumer cannot shop and did not shop that are provided by persons other than the creditor or mortgage broker. (12 CFR 1026.37(f)(2); 12 CFR 1026.38(f)(2))

Section B Cannot Shop/Did Not Shop Fees Paid To Lender(1001433)

There are ($_) of fees paid to the lender disclosed under Loan Estimate Section B "Services You Cannot Shop For" or Closing Disclosure Section B "Services Borrower Did Not Shop For". Under Regulation Z, charges included under Section B on the Loan Estimate and Closing Disclosure are charges the consumer will pay for settlement services for which the consumer cannot shop and did not shop that are provided by persons other than the creditor or mortgage broker. (12 CFR 1026.37(f)(2); 12 CFR 1026.38(f)(2))

Section B Cannot Shop/Did Not Shop Fees Paid to Broke(1001433)

There are no fees paid to the mortgage broker disclosed under Loan Estimate Section B "Services You Cannot Shop For" or Closing Disclosure Section B "Services Borrower Did Not Shop For". Under Regulation Z, charges included under Section B on the Loan Estimate and Closing Disclosure are charges the consumer will pay for settlement services for which the consumer cannot shop and did not shop that are provided by persons other than the creditor or mortgage broker. (12 CFR 1026.37(f)(2); 12 CFR 1026.38(f)(2))

Section B Cannot Shop/Did Not Shop Fees Paid to Broker(1001433)

There are ($_) of fees paid to the mortgage broker disclosed under Loan Estimate Section B "Services You Cannot Shop For" or Closing Disclosure Section B "Services Borrower Did Not Shop For". Under Regulation Z, charges included under Section B on the Loan Estimate and Closing Disclosure are charges the consumer will pay for settlement services for which the consumer cannot shop and did not shop that are provided by persons other than the creditor or mortgage broker. (12 CFR 1026.37(f)(2); 12 CFR 1026.38(f)(2))

Section B Charge Labeled as Not a Required Service(1001433)

There are no fees disclosed under Loan Estimate Section B "Services You Cannot Shop For" or Closing Disclosure Section B "Services Borrower Did Not Shop For" designated as "Non-Required", "Optional" or "Other" charges. Under Regulation Z, charges included under Section B on the Loan Estimate and Closing Disclosure are charges the consumer will pay for settlement services for which the consumer cannot shop and did not shop that are provided by persons other than the creditor or mortgage broker. Charges in connection with the transaction for services that are required or obtained in the real estate closing by the consumer, the seller, or other party and designated as "Non-Required" or "Optional" would be disclosed in Section H "Other". (12 CFR 1026.37(f)(2); 12 CFR 1026.38(f)(2); 12 CFR 1026.37(g)(4); 12 CFR 1026.38(g)(4))

Section B Charge Labeled as Not a Required Service(1001433)

There are ($_) of fees disclosed under Loan Estimate Section B "Services You Cannot Shop For" or Closing Disclosure Section B "Services Borrower Did Not Shop For" designated as "Non-Required", "Optional" or "Other" charges. Charges in connection with the transaction for services that are required or obtained in the real estate closing by the consumer, the seller, or other party and designated as a "Non-Required" or "Optional" would be disclosed in Section H "Other". Under Regulation Z, charges included under Section B on the Loan Estimate and Closing Disclosure are charges the consumer will pay for settlement services for which the consumer cannot shop and did not shop that are provided by persons other than the creditor or mortgage broker. (12 CFR 1026.37(f)(2); 12 CFR 1026.38(f)(2); 12 CFR 1026.37(g)(4); 12 CFR 1026.38(g)(4))

Federal - Integrated Disclosure Section C Can Shop/Did Shop Fees

Section C Can Shop/Did Shop Fees Paid To Lender(1001434)

There are no fees paid to the lender disclosed under Loan Estimate Section C "Services You Can Shop For" or Closing Disclosure Section C "Services Borrower Did Shop For". Under Regulation Z, charges included under Section C on the Loan Estimate and Closing Disclosure are charges the consumer will pay for settlement services for which the consumer can shop and did shop that are provided by persons other than the creditor or mortgage broker. (12 CFR 1026.37(f)(3); 12 CFR 1026.38(f)(3))

Section C Can Shop/Did Shop Fees Paid To Lender(1001434)

There are ($_) of fees paid to the lender disclosed under Loan Estimate Section C "Services You Can Shop For" or Closing Disclosure Section B "Services Borrower Did Shop For". Under Regulation Z, charges included under Section C on the Loan Estimate and Closing Disclosure are charges the consumer will pay for settlement services for which the consumer can shop and did shop that are provided by persons other than the creditor or mortgage broker. (12 CFR 1026.37(f)(3); 12 CFR 1026.38(f)(3))

Section C Can Shop/Did Shop Fees Paid to Broker(1001434)

There are no fees paid to the mortgage broker disclosed under Loan Estimate Section C "Services You Can Shop For" or Closing Disclosure Section C "Services Borrower Did Shop For". Under Regulation Z, charges included under Section C on the Loan Estimate and Closing Disclosure are charges the consumer will pay for settlement services for which the consumer can shop and did shop that are provided by persons other than the creditor or mortgage broker. (12 CFR 1026.37(f)(3); 12 CFR 1026.38(f)(3))

Section C Can Shop/Did Shop Fees Paid to Broker(1001434)

There are ($_) of fees paid to the mortgage broker disclosed under Loan Estimate Section C "Services You Can Shop For" or Closing Disclosure Section C "Services Borrower Did Shop For". Under Regulation Z, charges included under Section C on the Loan Estimate and Closing Disclosure are charges the consumer will pay for settlement services for which the consumer can shop and did shop that are provided by persons other than the creditor or mortgage broker. (12 CFR 1026.37(f)(3); 12 CFR 1026.38(f)(3))

Section C Charge Labeled as Not a Required Service(1001434)

There are no fees disclosed under Loan Estimate Section C "Services You Can Shop For" or Closing Disclosure Section C "Services Borrower Did Shop For" designated as "Non-Required", "Optional" or "Other" charges. Under Regulation Z, charges included under Section C on the Loan Estimate and Closing Disclosure are charges the consumer will pay for settlement services for which the consumer can shop and did shop that are provided by persons other than the creditor or mortgage broker. Charges in connection with the transaction for services that are required or obtained in the real estate closing by the consumer, the seller, or other party and designated as "Non-Required" or "Optional" would be disclosed in Section H "Other". (12 CFR 1026.37(f)(3); 12 CFR 1026.38(f)(3); 12 CFR 1026.37(g)(4); 12 CFR 1026.38(g)(4))

Section C Charge Labeled as Not a Required Service(1001434)

There are ($_) of fees disclosed under Loan Estimate Section C "Services You Did Shop For" or Closing Disclosure Section C "Services Borrower Did Shop For" designated as "Non-Required", "Optional" or "Other" charges. Charges in connection with the transaction for services that are required or obtained in the real estate closing by the consumer, the seller, or other party and designated as a "Non-Required" or "Optional" would be disclosed in Section H "Other". Under Regulation Z, charges included under Section C on the Loan Estimate and Closing Disclosure are charges the consumer will pay for settlement services for which the consumer can shop and did shop that are provided by persons other than the creditor or mortgage broker. (12 CFR 1026.37(f)(3); 12 CFR 1026.38(f)(3); 12 CFR 1026.37(g)(4); 12 CFR 1026.38(g)(4))

Federal - Integrated Disclosure Section E Taxes and Other Government Fees

Section E Taxes and Other Government Fees Paid To Lender(1001435)

There are no fees paid to the lender disclosed under Section E "Taxes and Other Government Fees". Under Regulation Z, charges included under Section E on the Loan Estimate and Closing Disclosure are the amounts to be paid to State and local governments for taxes and other government fees. (12 CFR 1026.37(g)(1); 12 CFR 1026.38(g)(1))

Section E Taxes and Other Government Fees Paid To Lender(1001435)

There are ($_) of fees paid to lender disclosed under Section E "Taxes and Other Government Fees". Under Regulation Z, charges included under Section E on the Loan Estimate and Closing Disclosure are the amounts to be paid to State and local governments for taxes and other government fees. (12 CFR 1026.37(g)(1); 12 CFR 1026.38(g)(1))

Section E Taxes and Other Government Fees Paid to Broker(1001435)

There are no fees paid to the mortgage broker disclosed under Section E "Taxes and Other Government Fees". Under Regulation Z, charges included under Section E on the Loan Estimate and Closing Disclosure are the amounts to be paid to State and local governments for taxes and other government fees. (12 CFR 1026.37(g)(1); 12 CFR 1026.38(g)(1))

Section E Taxes and Other Government Fees Paid to Broker(1001435)

There are ($_) of fees paid to the mortgage broker disclosed under Section E "Taxes and Other Government Fees". Under Regulation Z, charges included under Section E on the Loan Estimate and Closing Disclosure are the amounts to be paid to State and local governments for taxes and other government fees. (12 CFR 1026.37(g)(1); 12 CFR 1026.38(g)(1))

Section E Taxes and Other Government Fees Paid to Affiliate(1001435)

There are no fees paid to an affiliate disclosed under Section E "Taxes and Other Government Fees". Under Regulation Z, charges included under Section E on the Loan Estimate and Closing Disclosure are the amounts to be paid to State and local governments for taxes and other government fees. (12 CFR 1026.37(g)(1); 12 CFR 1026.38(g)(1))

Section E Taxes and Other Government Fees Paid to Affiliate(1001435)

There are ($_) of fees paid to an affiliate disclosed under Section E "Taxes and Other Government Fees". Under Regulation Z, charges included under Section E on the Loan Estimate and Closing Disclosure are the amounts to be paid to State and local governments for taxes and other government fees. (12 CFR 1026.37(g)(1); 12 CFR 1026.38(g)(1))

Section E Charge Labeled as Not a Required Service(1001435)

There are no fees disclosed under Section E "Taxes and Other Government Fees" designated as "Non-Required", "Optional" or "Other" charges. Under Regulation Z, charges included under Section E on the Loan Estimate and Closing Disclosure are the amounts to be paid to State and local governments for taxes and other government fees. Charges in connection with the transaction for services that are required or obtained in the real estate closing by the consumer, the seller, or other party and designated as "Non-Required" or "Optional" would be disclosed in Section H "Other". (12 CFR 1026.37(g)(1); 12 CFR 1026.38(g)(1); 12 CFR 1026.37(g)(4); 12 CFR 1026.38(g)(4))

Section E Charge Labeled as Not a Required Service(1001435)

There are ($_) of fees disclosed under Section E "Taxes and Other Government Fees" designated as "Non-Required", "Optional" or "Other" charges. Charges in connection with the transaction for services that are required or obtained in the real estate closing by the consumer, the seller, or other party and designated as a "Non-Required" or "Optional" would be disclosed in Section H "Other". Under Regulation Z, charges included under Section E on the Loan Estimate and Closing Disclosure are the amounts to be paid to State and local governments for taxes and other government fees. (12 CFR 1026.37(g)(1); 12 CFR 1026.38(g)(1); 12 CFR 1026.37(g)(4); 12 CFR 1026.38(g)(4))

Federal - Integrated Disclosure Section F Prepaids

Section F Prepaids Paid to Lender(1001436)

There are no fees paid to the lender disclosed under Section F "Prepaids", except prepaid interest. Under Regulation Z, charges included under the subheading "Prepaids" on the Loan Estimate or Closing Disclosure are those amounts to be paid by the consumer in advance of the first scheduled payment. (12 CFR 1026.37(g)(2); 12 CFR 1026.38(g)(2))

Section F Prepaids Paid to Lender(1001436)

There are ($_) of fees paid to the lender disclosed under Section F "Prepaids", other than prepaid interest. Under Regulation Z, charges included under the subheading "Prepaids" on the Loan Estimate or Closing Disclosure are those amounts to be paid by the consumer in advance of the first scheduled payment. (12 CFR 1026.37(g)(2); 12 CFR 1026.38(g)(2))

Section F Prepaids Paid to Broker(1001436)

There are no fees paid to the mortgage broker disclosed under Section F "Prepaids". Under Regulation Z, charges included under the subheading "Prepaids" on the Loan Estimate or Closing Disclosure are those amounts to be paid by the consumer in advance of the first scheduled payment. (12 CFR 1026.37(g)(2); 12 CFR 1026.38(g)(2))

Section F Prepaids Paid to Broker(1001436)

There are ($_) of fees paid to the mortgage broker disclosed under Section F "Prepaids", other than prepaid interest. Under Regulation Z, charges included under the subheading "Prepaids" on the Loan Estimate or Closing Disclosure are those amounts to be paid by the consumer in advance of the first scheduled payment. (12 CFR 1026.37(g)(2); 12 CFR 1026.38(g)(2))

Section F Prepaid Interest Paid to Affiliate or Provider(1001436)

There is no prepaid interest designated as paid to an affiliate or third-party provider disclosed under Section F "Prepaids". Under Regulation Z, charges included under the subheading "Prepaids" on the Loan Estimate or Closing Disclosure are those amounts to be paid by the consumer in advance of the first scheduled payment. Prepaid interest would be designated as paid to the lender. (12 CFR 1026.37(g)(2); 12 CFR 1026.38(g)(2))

Section F Prepaid Interest Paid to Affiliate or Provider(1001436)

There is ($_) of prepaid interest designated as paid to an affiliate or third-party provider disclosed under Section F "Prepaids". Under Regulation Z, charges included under the subheading "Prepaids" on the Loan Estimate or Closing Disclosure are those amounts to be paid by the consumer in advance of the first scheduled payment. Prepaid interest should not be designated as paid to anyone other than the lender. (12 CFR 1026.37(g)(2); 12 CFR 1026.38(g)(2))

Section F Charge Labeled as Not a Required Service(1001436)

There are no fees disclosed under Section F "Prepaids" designated as "Non-Required", "Optional" or "Other" charges. Under Regulation Z, charges included under the subheading "Prepaids" on the Loan Estimate or Closing Disclosure are those amounts to be paid by the consumer in advance of the first scheduled payment. Charges in connection with the transaction for services that are required or obtained in the real estate closing by the consumer, the seller, or other party and designated as "Non-Required" or "Optional" would be disclosed in Section H "Other". (12 CFR 1026.37(g)(2); 12 CFR 1026.38(g)(2); 12 CFR 1026.37(g)(4); 12 CFR 1026.38(g)(4))

Section F Charge Labeled as Not a Required Service(1001436)

There are ($_) of fees disclosed under Section F "Prepaids" designated as "Non-Required", "Optional" or "Other" charges. Charges in connection with the transaction for services that are required or obtained in the real estate closing by the consumer, the seller, or other party and designated as a "Non-Required" or "Optional" would be disclosed in Section H "Other". Under Regulation Z, charges included under the subheading "Prepaids" on the Loan Estimate or Closing Disclosure are those amounts to be paid by the consumer in advance of the first scheduled payment. (12 CFR 1026.37(g)(2); 12 CFR 1026.38(g)(2); 12 CFR 1026.37(g)(4); 12 CFR 1026.38(g)(4))

CER-23015

ECS has been updated to include new FAIL status messages related to APR (Annual Percentage Rate) comparisons between system calculated APR (Actual APR) and APRs disclosed on the most recently received Closing Disclosure (CD) and the final CD. The system will now trigger a FAIL status message under the following circumstances:

Federal - Corrected Closing Disclosure Initial, Prior, Last (APR)

Prior CD Received at least 3 Days before Closing (Prior CD compared to Actual APR)(1001417)

The Prior CD1 sent on (_) was received at least 3 business days before closing. The Last CD sent on (_) was not received at least 3 business days before closing. The Prior CD1 (_%) APR is inaccurate when compared to the (_%) actual APR. If the APR is inaccurate, a consumer must receive a corrected CD no later than (_), which is 3 business days before the (_) Consummation Date. If a corrected CD is not provided in person, a consumer is deemed to have received it 3 business days after the corrected CD is mailed or delivered, unless there is evidence of earlier receipt. The APR on the CD received at closing must be accurate when compared to the APR on the CD received at least 3 business days before closing and the actual APR. (12 CFR 1026.19(f)(2)(ii)(A); OSC 19(f)(2)(ii)-1)

Prior CD Received at least 3 Days before Closing (Last CD compared to Prior CD APR)(1001417)

The Prior CD1 sent on (_)was received at least 3 business days before closing. The Last CD sent on (_) was not received at least 3 business days before closing. The Last CD (_%) APR is inaccurate when compared to the Prior CD1 (_%) APR. If the APR is inaccurate, a consumer must receive corrected a CD no later than (_), which is 3 business days before the (_) Consummation Date. If a corrected CD is not provided in person, a consumer is deemed to have received it 3 business days after the corrected CD is mailed or delivered, unless there is evidence of earlier receipt. The APR on the CD received at closing must be accurate when compared to the APR on the CD received at least 3 business days before closing and the actual APR. (12 CFR 1026.19(f)(2)(ii)(A); OSC 19(f)(2)(ii)-1)

Prior and Last CD Not Received at least 3 Days before Closing (Initial CD compared to Actual APR)(1001417)

The Last CD sent on (_) and Prior CD1 sent on (_) were not received at least 3 business days before closing. The Initial CD was received at least 3 business days before closing. The Initial CD (_%) APR is inaccurate when compared to the (_%) actual APR. If the APR is inaccurate, a consumer must receive a corrected CD no later than (_), which is 3 business days before the (_) Consummation Date. If a corrected CD is not provided in person, a consumer is deemed to have received it 3 business days after the corrected CD is mailed or delivered, unless there is evidence of earlier receipt. The APR on the CD a consumer receives at closing must be accurate when compared to the APR on the CD received at least 3 business days before closing and the actual APR. (12 CFR 1026.19(f)(2)(ii)(A); OSC 19(f)(2)(ii)-1)

Prior and Last CD Not Received at least 3 Days before Closing (Initial CD compared to Last CD APR)(1001417)

The Last CD sent on (_) and Prior CD1 sent on (_) were not received at least 3 business days before closing. The Initial CD was received at least 3 business days before closing. The Last CD (_%) APR is inaccurate when compared to the Initial CD(_%) APR. If the APR is inaccurate, a consumer must receive a corrected CD no later than (_), which is 3 business days before the (_) Consummation Date. If a corrected CD is not provided in person, a consumer is deemed to have received it 3 business days after the corrected CD is mailed or delivered, unless there is evidence of earlier receipt. The APR on the CD a consumer receives at closing must be accurate when compared to the APR on the CD received at least 3 business days before closing and the actual APR. (12 CFR 1026.19(f)(2)(ii)(A); OSC 19(f)(2)(ii)-1)

Federal - Corrected Closing Disclosure Initial, Two Prior, Last (APR)

Prior CD Received at least 3 Days before Closing (Prior CD compared to Actual APR)(1001418)

Prior CD2 sent on (_) was received at least 3 business days before closing. The Prior CD2 (_%) APR is inaccurate when compared to the (_%) actual APR. The Last CD sent on (_) and Prior CD1 sent on (_) were not received at least 3 business days before closing. If the APR is inaccurate, a consumer must receive a corrected CD no later than (_), which is 3 business days before the (_) Consummation Date. If a corrected CD is not provided in person, a consumer is deemed to have received it 3 business days after the corrected CD is mailed or delivered, unless there is evidence of earlier receipt. The APR on the CD received at closing must be accurate when compared to the APR on the CD received at least 3 business days before closing and the actual APR. (12 CFR 1026.19(f)(2)(ii)(A); OSC 19(f)(2)(ii)-1)

Prior CD Received at least 3 Days before Closing (Prior CD compared to Last CD APR)(1001418)

Prior CD2 sent on (_) was received at least 3 business days before closing. The Last CD sent on (_) and Prior CD1 sent on (_) were not received at least 3 business days before closing. The Last CD (_%) APR is inaccurate when compared to the Prior CD2 (_%) APR. If the APR is inaccurate, a consumer must receive corrected a CD no later than (_), which is 3 business days before the (_) Consummation Date. If a corrected CD is not provided in person, a consumer is deemed to have received it 3 business days after the corrected CD is mailed or delivered, unless there is evidence of earlier receipt. The APR on the CD received at closing must be accurate when compared to the APR on the CD received at least 3 business days before closing and the actual APR. (12 CFR 1026.19(f)(2)(ii)(A); OSC 19(f)(2)(ii)-1)

Federal - Corrected Closing Disclosure Initial, Three Prior, Last (APR)

Prior CD3 Received at least 3 Days before Closing (Prior CD3 compared to Actual APR)(1001419)

Prior CD3 sent on (_) was received at least 3 business days before closing. The Prior CD3 (_%) APR is inaccurate when compared to the (_%) actual APR. The Last CD sent on (_), Prior CD1 sent on (_), and Prior CD2 sent on (_) were not received at least 3 business days before closing. If the APR is inaccurate, a consumer must receive a corrected CD no later than (_), which is 3 business days before the (_) Consummation Date. If a corrected CD is not provided in person, a consumer is deemed to have received it 3 business days after the corrected CD is mailed or delivered, unless there is evidence of earlier receipt. The APR on the CD received at closing must be accurate when compared to the APR on the CD received at least 3 business days before closing and the actual APR. (12 CFR 1026.19(f)(2)(ii)(A); OSC 19(f)(2)(ii)-1)

Prior CD3 Received at least 3 Days before Closing (Prior CD3 compared to Last CD APR)(1001419)

Prior CD3 sent on (_) was received at least 3 business days before closing. The Last CD (_%) is inaccurate when compared to the Prior CD3 (_%) APR. The Last CD sent on (_), Prior CD1 sent on (_), and Prior CD2 sent on (_) were not received at least 3 business days before closing. If the APR is inaccurate, a consumer must receive a corrected CD no later than (_), which is 3 business days before the (_) Consummation Date. If a corrected CD is not provided in person, a consumer is deemed to have received it 3 business days after the corrected CD is mailed or delivered, unless there is evidence of earlier receipt. The APR on the CD received at closing must be accurate when compared to the APR on the CD received at least 3 business days before closing and the actual APR. (12 CFR 1026.19(f)(2)(ii)(A); OSC 19(f)(2)(ii)-1)

Federal - Corrected Closing Disclosure Initial, Four Prior, Last (APR)

Prior CD4 Received at least 3 Days before Closing (Prior CD4 compared to Actual APR)(1001420)

Prior CD4 sent on (_) was received at least 3 business days before closing. Prior CD4 (_%) APR is inaccurate compared to the (_%) actual APR. The Last CD sent on (_), Prior CD1 sent on (_), Prior CD2 sent on (_), and PriorCD3 sent on (_%) were not received at least 3 business days before closing. If the APR is inaccurate, a consumer must receive a corrected CD no later than (_), which is 3 business days before the (_) Consummation Date. If a corrected CD is not provided in person, a consumer is deemed to have received it 3 business days after it is mailed or delivered, unless there is evidence of earlier receipt. The APR on the CD received at closing must be accurate when compared to the APR on the CD received at least 3 business days before closing and the actual APR.(12 CFR 1026.19(f)(2)(ii)(A);OSC 19(f)(2)(ii)-1)

Prior CD4 Received at least 3 Days before Closing (Prior CD4 compared to Last CD APR)(1001420)

Prior CD4 sent on (_) was received at least 3 business days before closing. The Last CD (_%) is inaccurate compared to the Prior CD4 (_%) APR. The Last CD sent on (_), Prior CD1 sent on (_), Prior CD2 sent on (_), and Prior CD3 sent on (_%) were not received at least 3 business days before closing. If the APR is inaccurate, a consumer must receive a corrected CD no later than (_), which is 3 business days before the (_) Consummation Date. If a corrected CD is not provided in person, a consumer is deemed to have received it 3 business days after it is mailed or delivered, unless there is evidence of earlier receipt. The APR on the CD received at closing must be accurate when compared to the APR on the CD received at least 3 business days before closing and the actual APR. (12 CFR 1026.19(f)(2)(ii)(A); OSC 19(f)(2)(ii)-1)

Federal - Corrected Closing Disclosure Initial, Five Prior, Last (APR)

Prior CD5 Received at least 3 Days before Closing (Prior CD5 compared to Actual APR)(1001421)

Prior CD5 sent on (_) was received at least 3 business days before closing. The Prior CD5(_%) APR is inaccurate compared to the (_%) actual APR. The Last CD sent on (_) and Prior CD1 through Prior CD4 were not received at least 3 business days before closing. If the APR is inaccurate, a consumer must receive a corrected CD no later than (_), which is 3 business days before the (_) Consummation Date. If a corrected CD is not provided in person, a consumer is deemed to have received it 3 business days after it is mailed or delivered, unless there is evidence of earlier receipt. The APR on the CD received at closing must be accurate when compared to the APR on the CD received at least 3 business days before closing and the actual APR. (12 CFR 1026.19(f)(2)(ii)(A); OSC 19(f)(2)(ii)-1)

Prior CD5 Received at least 3 Days before Closing (Prior CD5 compared to Last CD APR)(1001421)

Prior CD5 sent on (_) was received at least 3 business days before closing. The Last CD (_%) is inaccurate compared to the Prior CD5 (_%) APR. The Last CD sent on (_) and Prior CD1 through Prior CD4 were not received at least 3 business days before closing. If the APR is inaccurate, a consumer must receive a corrected CD no later than (_), which is 3 business days before the (_) Consummation Date. If a corrected CD is not provided in person, a consumer is deemed to have received it 3 business days after it is mailed or delivered, unless there is evidence of earlier receipt. The APR on the CD received at closing must be accurate when compared to the APR on the CD received at least 3 business days before closing and the actual APR. (12 CFR 1026.19(f)(2)(ii)(A); OSC 19(f)(2)(ii)-1)

CER-23172

State Rules

ECS has been updated to refine the handling of late fees charged to the borrower for loans in the state of Iowa under the provisions of Iowa Code § 537.2502. This update specifically impacts users submitting Iowa junior lien open-end HELOCs, as it adjusts the late fee rule to focus solely on whether the late fee exceeds $30, without considering whether it exceeds 5%.

Iowa - Maximum Late Fee (Open-End Loans, ICCC)

Late Fee Less Than Or Equal to $30 (07/2017)(17020)

You submitted a ($_) Late Fee Amount, a (_%) Late Fee Percent, and a ($_) Maximum Late Fee Amount. (_%) of the unpaid installment is ($_). The Iowa Consumer Credit Code prohibits a late fee on an open-end loan that exceeds $30. (Iowa Code 537.2502(4))

Late Fee Less Than Or Equal to $30 (07/2017)(17020)

You submitted a ($_) Late Fee Amount, a (_%) Late Fee Percent, and a ($_) Maximum Late Fee Amount. (_%) of the unpaid installment is ($_). The Iowa Consumer Credit Code prohibits a late fee on an open-end loan that exceeds $30. (Iowa Code 537.2502(4))

CER-23111

ECS has been updated to refine the handling of late fees charged to the borrower for junior lien loans submitted in the state of Missouri. Specifically, an argument has been added to evaluate whether the Maximum Late Fee field is less than or equal to the late fee amount under RH 2580 Missouri - Maximum Late Fee (Junior Liens).

Missouri Rule Impacted —

  • RH 2580 Missouri - Maximum Late Fee (Junior Liens)

This update aligns with the Missouri Second Mortgage Loan Interest Provisions as detailed in sections 408.231 to 408.24 of the Missouri Revised Statutes.

CER-22856

Pursuant to Section 37-1-109, designated dollar amounts in the Consumer Protection Code are subject to change on July 1 of every even-numbered year based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI). The Administrator is required to announce the dollar amounts by publication in the State Register no later than April 30 of each even-numbered year.

To align with the updated dollar amounts as per regulatory changes, ECS has adjusted its values accordingly:

Encompass Dollar Amount from 7/1/2022 to 6/30/2024 Dollar Amount from 7/1/2024-6/30/26
Max Late Fee $23.00 $25.50
Minimum Late Fee $9.20 $10.20
Loan Amount $4,600 $5,000
Prepayment Penalty Amount $690,000 $765,000

Department of Consumer Affairs - Notice of General Public Interest - Changes in Dollar Amounts.

CER-23047

ECS has been updated to incorporate a new exemption for Tennessee loans, designed specifically for Federal Credit Unions (FCUs). This update prevents the max brokerage commissions rule from applying to loans associated with FCUs under Rule Header 1001426 - Tennessee Max Brokerage Commissions.

CER-23160

ECS has been updated to provide a new Info status message regarding the exemption depository financial institutions have from Utah's High Cost Threshold tests.

Although the Utah High Cost Threshold tests will be applied to all users, a depository financial institution may take additional steps in their Encompass Admin Settings to receive an ALERT status message instead of a FAIL status message if either the Utah High Cost rate or points and fees threshold is exceeded.

Utah - High Cost Home Loan (Depository Institutions)

Depository Institution Exemption from Utah High Cost Home Loan Act (INFO)(1001437)

Under the Utah High Cost Home Loan Act, a lender is a person that offers or extends a high-cost mortgage and is required to have a license under the Utah Residential Mortgage Practices and Licensing Act (URMPLA). If a lender is a "depository institution", it is exempt from the URMPLA and therefore from the Utah High-Cost Loan thresholds and restrictions. The exemption is based on the nature of the lender, not the nature of the loan. Just because a loan is exempt from the URMPLA does not mean that it is exempt from the Utah High-Cost Loan thresholds or restrictions. (Utah Code Ann. Sec. 61-2d-102(4); Utah Code Ann. Sec. 61-7-1-103(8); Utah Code Ann. Sec. 61-2c-105(2)(e))

To Change the State/Local High-Cost Loans Message Status From FAIL to ALERT: 

  1. On the menu bar, click Encompass, and then click Settings.

  2. On the left panel, click Docs Setup, and then click Compliance Audit Settings.

  3. In the State/Local High-Cost Loans section, select the Utah checkbox.

  4. Click Save located in the top-right corner of the window, then click Close.

    After making any changes, please log out and then log back in to Encompass to ensure that the changes are applied successfully.

CER-23089

Current Section

Current Section

Rules in April 2024 Release