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Notarize e signature disclosure

hi this is Mark Fleming president of signature closers today I'd like to take a few moments of your time to review a sample closing disclosure form the closing disclosure will come into place on most loans originating on or after October 1st 2015 the closing disclosure will replace the current hud-1 settlement statement as well as the Truth in Lending by combining them into one form for the borrower to review at the closing table today we're going to review a refinance transaction with a typical loan closing disclosure form you'll see the top of the form includes information about the date of issue the closing date disbursement date who the settlement agent is file number property address as well as borrower specific information and loan information the rest of the form looks very similar to the loan estimate form you'll see the loan amount the interest rate the monthly principal and interest and whether those amounts can increase or not after closing you'll see a prepayment penalty in a balloon payment and if this loan does possess those features you'll see projected payments to include a principal and interest break out mortgage insurance break out an estimated escrow as well as a break out of these cost and years 5 through 30 in the event that you have a loan that obviously is going to change rates it may be an adjustable rate mortgage you would expect to see a different payment project that out as time goes on and then you'll see estimated taxes insurance and assessments talks about what those actually include so you see 356 dollars and 13 cents you have property taxes and homeowners insurance and you'll see that those are included in escrow however your homeowners association dues will not be included in escrow and so would not be included in your mortgage payment but it does get included in this section here you'll have a cost at closing so closing cost you'll see five thousand seven hundred fifty seven dollars and fifty seven cents and there's gonna be some forms here in a little bit that break that down a bit further and then your total cash at closing so in this case twenty nine thousand six hundred seventy seven dollars and forty three cents will actually be coming back to the borrower as a result of the refinance this form looks very similar to our HUD settlement statement today you'll notice section a includes all origination charges so the application fee or origination fee underwriting fee etc all rolled up into Section a the origination total section B is Services the borrower did not shop for so typically this would include an appraisal fee credit report fee flood determination and other closing fees services the borrower did shop for is going to include most typically or title insurance services and in this case includes a pest inspection fee and you will see there's a space for paid at closing and then paid before closing as well section D total is the loan cost that the borrower has paid and it also breaks it out into a subtotal showing paid at closing as well as before closing by the borrower as you scroll further down the page you'll see section E would be taxes or other government fees so recording fees would be included here you'll see $60.00 for the mortgage prepaids typically includes homeowners insurance mortgage insurance prepaid interest property taxes and you'll see those roll up to the total for section F of prepaids Section G includes your initial escrow payment at closing so your homeowners insurance mortgage insurance and property taxes typically set aside to build some type of base or reserve in the escrow account that's all rolled up into section G so you'll see the total other cost section I is going to be the total from sections e F G and H and in this case that totals two thousand seven hundred sixty two dollars and seven cents if you look at section J the total closing cost paid by the borrower are going to be the totals from section D and section I so you'll notice that it's five thousand eight hundred and twenty two dollars and fifty seven cents paid at closing four hundred and thirty five dollars paid before closing and then there's a lender credit applied against what that total would be of five hundred dollars to reduce their closing cost to five thousand seven hundred fifty seven dollars and fifty seven cents the next page shows payoffs and payments made on this loan so in this situation you'll see that there's a payoff of an existing loan of a hundred and fifteen thousand dollars total in section K finally when calculating cash to you'll see that there is a comparison between the original loan estimate and your final loan cost the loan amount of one hundred and fifty thousand dollars remains unchanged total closing cost you can see here that they're slightly higher than projected at 5757 dot 57 cents versus the five thousand ninety nine projected closing cost you'll see costs paid before closing and then you'll also see total payoffs and payments of one hundred and fifteen thousand dollars so in this situation the total cash to close is actually going to be an amount paid back to the borrower in the amount of twenty nine thousand six hundred and seventy seven dollars and forty three cents there's additional information about the loan on this form such as whether the loan is assumable or not and whether there's a demand feature on this loan or not that could require early payment or early repayment by the lender talks about if you have late payments what that would be if it's more than fifteen days late and what the late fee is if there's negative negative amortization excuse me on this loan if partial payments will be accepted if your escrow account is set up it shows a break out of what will be included in your one what non S current property cost happened over the course of the first year which in this case would be potentially your homeowners association dues it's gonna show your initial escrow payment as well as your monthly escrow payment this form is gonna have a break out very similar to what the truth-in-lending shows today total of payments you'll see here the total you've paid after you've made all payments of principal interest mortgage insurance and otherwise your finance charge which is basically the dollar amount the loan cost you your amount financed which is the amount the loan amount available after paying your finance charge your annual percentage rate is your total cost broken out over the course of the loan term expressed as a rate this is not the interest rate it's very important to point out to the borrower sometimes they see that number and they want to know well why is that different than my interest rate well basically include your cost closing cost and otherwise built in your total interest percentage is going to be a number that shows you the total interest divided by the actual amount over the loan term there will be some other information provided on this form regards to your appraisal liability after foreclosure in the event you would unfortunately have a foreclosure as well as contact information for the lender the mortgage broker the settlement agent you'll notice there's a space for an applicant signature and a date and obviously that needs to happen at closing and we're still in the process of determining whether an on borrowing spouse will have to sign this document or not which we will let you know as soon as we know below we've provided a link to additional training available through the national notary Association that we would encourage you to utilize to further your education and your growth in this area if you have questions or comments please feel free to contact us at any time we're here to help as you continue your growth and education with these new changes please keep in mind this closing disclosure form will replace the hud-1 settlement statement and the Truth in Lending form at the final closing table for most loans originating on or after October 1st 2015 thank you again for your time and have a wonderful day