LOAN DOCUMENTS – At a Glance

1 loan D OCUMENTS At a Glance Bor rower s Cer ti fi ca ti on Aut horiz ati on Sig ni ng Presentat io n Gui de li ne s Bor rower s Cer tification A ut horiz ation. This d oc ument certifies al l of the in formati on provide d i n t he loan appli cati on i s true and comple te. Addit io nal Information This is the Borrower s Cert ificat ion an d Aut hor izati on . By signing th is document the borrower agrees and certifies tha t the information cont ai ne d in th e borrower s loan app licat ion is tr ue an d complete, witho ut misre pr es en ta ti on or omission of impo rtant fac ts . The borrower also authorizes the len der to release loa n-spec ifi c info rmat ion to an inv es to r looking to pu rc hase the loa n in th e sec ond ary market. In formati on provided to th e investor coul d include the borrower s employ men t history and income, bank ac cou nt ba lanc es, credit histo ry and copi es of th e borrower s inc ome ta x retur ns.

2 Compl ia nce A gr eement Sig ni ng Presentat io n Gui de li ne s Compliance Agr eement. This s tates that i f there are any t ypographical or clerical errors on the closing DOCUMENTS , the borrower would agree to si gn any DOCUMENTS that had to be corrected. Addit io nal Information This is the Compliance Agreement. Thi s document sta te s tha t the borrower agrees to cooperate with the lender or len de r s agent in f ixing cler ical errors on th e DOCUMENTS aft er th e proper ty clos es . Depend ing up on t he l en de r, t hi s document m ay o r m ay no t be no ta ri zed. Compl ianc e Agreements may come in sev eral fo rms: Errors & Omissions Agreemen t Doc umen t Correction Agreement Correc ti on Agre emen t Some var iations (C orrecti on Agreement Li mite d Power of At to rney) give an age nt of the lender permission to fix the clerical er rors on the bo rrower s beh al f.

3 It speeds up the proces s of correcti ng the document s by gi ving someone who works fo r the len der th e power to mak e corrections on the borrower s beh al f. Closing Disclosure Sig ni ng Presentat io n Gui de li ne s Combines and replaces the HUD-1 and TIL statement for most loans August 1, 2015. Addit io nal Information This is the Closing Disclosure. Your lender should have sent you this in advance. It itemizes all closing costs. Page 1 includes loan amount, interest rate, projected monthly payments, closing costs and cash to close. The remaining pages include closing cost details such as loan and other costs, payoffs and payments, cash to close calculations, disclosures, loan calculations and contact this document you can find: loan terms loan amount Interest rate Monthly principal and interest Cost at closing loan disclosures loan calculations Total of payments Finance charge Amount financed APR Total Interest Percentagen/aDeed of Tr ust Sig ni ng Presentat io n Gui de li ne s Deed of Trust.

4 This document is recorded in c ounty l and records as e vid en ce of the le nder s s ecurity i nt erest in the property. (Note: A ny riders should al so be signed at this time.) Riders. (If applicable.) (Note: even though the script only mentions the following riders, there are many mor e.) Planned Unit Development (PUD) Rider. This rider require s y ou to pay any fees or assessments that may be lev ie d by a Homeowners Associa ti on to prevent any li en s by t he associa ti on. Second Home Rider. This rider state s y ou are not occupyin g the home as y our primary residence. 1- 4 Family Rider. This rider states that y our property i s a mult i-unit property. Manufactured Home R ider. This rider states th e property is a manufac tured home. Condominium Rider. This rider state s the property is a con dominiu m. ARM Rider.

5 This ri der states t his loan is an Adjustabl e Rate Mortgage (ARM) lo an Addit io nal Information This is a Dee d of Trust. It is a security ins trumen t whe re by real pro perty is pledged as a security fo r a debt. Thi s is the one document in th e package tha t is al ways notarized . Depend ing on th e for ec los ure law in th e sta te whe re th e bo rrower l ives , a Deed of Trust or Mortga ge is us ed. Forec los ure of a Mortgage must go th ro ug h the cou rt while a foreclosure for Deed of Trust go es through th e title hol de r. With a Dee d of Trus t, t he b orrower rec eives ti tl e to the pr op er ty bu t convey s ti tle to a neu tr al third pa rty called a trustee un til th e loa n ba lanc e is p ai d in f ul l. The Assignment of Deed of Trust that may be found in some lo an packages is NOT the same as a Deed of Trust.

6 A Notary should not notariz e an Assignment of Deed of Trust that appears in the lo an package. Errors & Omi ss io ns ( E&O) Agr eement Sig ni ng Presentat io n Gui de li ne s This s tates that if there are any ty po graphical or clerical errors on the c lo sin g DOCUMENTS , the borrower wou ld agree to sign any DOCUMENTS that had to be corrected. Addit io nal Information This is the Errors & Omissions Agreement. This document stat es th at the borrower agrees to cooperate with the lender or lend er s ag en t in fixing cleri cal errors on the document s af te r th e prope rty clos es . Depend ing up on t he l en de r, t hi s document m ay o r may no t be n ot ar ized . Er ro rs & Omissions Agreement may come in sev era l forms: Compliance Agreemen t Doc umen t Correction Agreement Correc ti on Agre emen t.

7 Flood H az ar d Notice Sig ni ng Presentat io n Gui de li ne s This i ndicates w hether or not the property i s i n an area designated as a flood zone area. Addit io nal Information This document als o stip ulates: At min im um, how much flo od in surance must be purchased That flood in surance coverage is avail able under the Natio nal Flood Insurance Program (NFIP) Whether federal dis aster reli ef assistance may be avail able in the event of damage to the buildin g caused by flo oding in a federall y decla red dis aster. Gener al Closing In structions Sig ni ng Presentat io n Gui de li ne s n/a Addit io nal Information These are the General Closin g Instructio ns. This document provides the le nder s general requir ements (conditio ns) to the settlement agent for the clo sin g of all sin gle-famil y resid entia l mortgage lo an transactio ns.

8 The General Closing Instructions provide the lender s conditions for executing and correcting DOCUMENTS , using a Power of Attorney and handling transactions wit h a rescis sion period. GFE/G ood F aith Estimate Sig ni ng Presentat io n Gui de li ne s The Good F aith Estimate is an esti mate o f all c lo sin g fees i nc lu din g pre-paid and escrow it ems as w el l as le nd er char ge s. Addit io nal Information Referred to as the GFE, this document must be provid ed by a le nder or broker as provid ed by the Real Estate Settlement Procedures Act (RESPA) It is a dis clo sure in whic h the le nder provid es the borrower wit h the best estim ate of settlement costs at the time of appli catio n. It contain s a summary of important lo an terms and the total estimated costs for the loan . This in formatio n helps the borrower comparis on shop from le nder to le nder.

9 Alt hough the Good Fait h Estimate is not sig ned, some lenders may in clu de another document that asks borrowers to atte st that they receiv ed and revie wed this document .. HUD-1 Set tl ement Stat ement Sig ni ng Presentat io n Gui de li ne s Let s start wit h the Settle ment Statement. The HUD/Settlement Statement itemizes al l clo sin g cos ts; on pages 1 and 2 i tems that appear on this s ta tement include real es tate commis sio ns, l oa n fees, point s, payoffs a nd escrow amounts. Page 3 of the Settl ement Statement is a comparison of the fees di sclo sed on the Good Faith E stim at e (GFE) to the ac tual cos ts a s l isted on the settlement statement/HUD. The bottom port io n of Page 3 shows th e l oan terms. The lo an amou nt, rate, term, principal a nd int erest payment as w el l as total payment are at the bott om.

10 Addit io nal Information The HUD-1 Settlement Statement it emiz es the actual settl ement servic es provided and fees charged to the borrower. It s the cost of borrowing the money for the loan . The foll owing li nes on the HUD-1 are of partic ular interest to signing professionals conducting a loan signing: Line 103 - Settlement charges to borrower Line 120 - Gross amount due from borrower Line 220 - Total amount paid by/for borrower Line 300 Checkbox for borrower to provide/receiv e funds at closing Bottom half of page 3 summarizes loan terms ( loan amount, t erm, interest rate) The HUD-1 is the industry standard settl ement statement adopted for use by the Department of Housing and Urban Development. The fully completed HUD-1 Settl ement Statement generally must be deli vered or mail ed to the borrower at or before the settlement.