Consummation: Occurs when the consumer becomes contractually obligated to the creditor on the loan, not, for example, when the consumer becomes contractually obligated to a seller on a real estate transaction. The point m time when a consumer becomes contractually obligated to the creditor on the loan depends on applicable State law. Consummation is not the same as closing or settlement.
Date Issued: The date the disclosures (Loan Estimate and Closing D1sclosurel are delivered to the consumer.
Disbursement Date: The date the amounts are to be disbursed to a consumer and seller in a purchase transaction or the date funds are to be paid to the consumer or a third party ,n a transaction that is not a purchase transaction.
Finance Charge: The dollar amount the loan will cost the consumer.
Integrated Mortgage Disclosure (IMO)
IMO: Integrated Mortgage Disclosure (New forms: Loan Estimate (LE) and Closing Disclosure (CD)). The New Rule and Forms apply to most closed-end consumer mortgage loans. It does not apply to home equity hnes of credit, reverse mortgages, or mortgage loans secured by a mobile home or by a dwelling that is not attached to real property. The new rule does not apply to loans made by a creditor who makes five or fewer mortgages in a year.
Issue Date on LE and CD: The date you deliver or place in the mail the applicable disclosure.
Loan Estimate (LE)
Loan Estimate (LE): Form designed to provide disclosures that will be helpful to consumers in understanding the key feature. costs and risks of the mortgage loan for which they are applying. Initial disclosure to be given to the consumer three (3) business days after application and replaces the GFE and early TIL
MIC: Mortgage Insurance Case Number
MISMO: Mortgage Industry Standards Maintenance Organization. MISMO sets standards of how to format data sent to another party for both res1dent1al and commercial property transactions in US markets. By promoting improved data consistency, MISMO aims to reduce costs and increase transparency while promoting confidence m mortgages as an asset class for investors. Ultimately, MISMO standards should deliver cost savings to consumers.
MISMO Compliant: Software vendor developed their platform using the MISMO data format standards to send data to other parties.
NMLSR ID: Nationwide Mortgage Licensing System and Registry ldentif1cat1on Number
New Rule: The TILA-RESPA rule consolidates four ex1st1ng disclosures required under TILA and RESPA for closed-end credit transactions secured by real property into two forms: a Loan Estimate (LE) that must be delivered or placed m the mail no later than the third business day after receiving the consumer’s application, and a Closing Disclosure (CD) that must be provided to the consumer at least three business days pnor to consummation.
RESPA: Real Estate Settlement Procedures Act
TIL: Truth in Lending
TILA: Truth m Lending Act
TIP: Total Interest Paid
TIP: Total Interest Paid. The total amount of interest the borrower will pay over the loan term as a percentage of the loan amount.
Total Payments: Total amount paid after payment of all pnnc1pal, interest, mortgage insurance and loan costs as scheduled.
UCO: Uniform Closing Dataset
UCO: Uniform Closing Dataset. Freddie Mac and Fannie Mae, GSEs lGovernment Sponsored Enttt1es) have prov,ded a common industry dataset called the Uniform Clo5mg Dataset (UCO) to support the Consumer Financial Protection Bureau’s (CFPB) Closing Disclosures. Our Underwriter, First American Title, recently pubhshed the UCO MISMO-mapping document. Please note; it’s important that lenders and vendors develop a plan for how they will implement the UCO. Using the UCO to implement the CFPB’s Closing Disclosure could save you time and resources.
Variance: Previously and also known as Tolerances
Written List of Providers
Written list of Providers: A written list of service providers given to the consumer by the Creditor or Mortgage Broker for a settlement service provider that the consumer is permitted to shop for.