TRID Hits Consumers and Industry; Wells and Chase Discuss Common Defects

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Posted To: Pipeline Press

Yesterday I posted some USDA rural housing updates , and received a couple notes from astute readers on a couple errors. The upfront guarantee fee is not 2%, as was reported in a mortgage publication. The fee is currently 2.75%. And the same article reported that, regarding the maximum legal note rate, one can round the USDA fee up to the highest quarter. Currently, the USDA fee is allowed to be rounded up to the nearest quarter of one percent. If a lender locks the loan above the maximum legal note rate the loan is not eligible to be insured. Here is guidance from the USDA 3555 Handbook: "The lender and the borrower are free to negotiate any mutually acceptable fixed interest rate, as long as it does not exceed the interest rate cap established by the Agency. This cap is 100 basis points ...(read more)

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Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/12222015-trid-defects.aspx

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