What about that new Special Information Booklet …..the “Toolkit” ….. when do I have to provide?


For many years we have been providing booklets at application and at closing, but the process has escalated to a very serious issue when you are audited. It used to be called the Settlement Costs Booklet. Now it is called the Toolkit. Do you provide the booklet as required?

The booklet must be delivered or placed in the mail no later than three business days after the application is received. We are talking about a qualified application (the “six things test”).

Delivered means handed to, or mailed in physical form in the US Mail, or UPS, or e-mail.  E-mail? Sure, why not? If you e-mail and request a receipt, and send it to an e-mail you know to be valid, it should satisfy Electronic Documents rules.

Lenders are required to deliver or mail the Toolkit not later than 3 days after receipt of an application.  However, in the Federal Register notice announcing the Toolkit’s availability, the CFPB encourages all market participants (such as realtors) “to provide the [Toolkit] to consumers at any other time, preferably as early in the home or mortgage shopping process as possible.”  The Toolkit is designed to be distributed electronically and has interactive worksheets and checklists. So that should end any argument that it had to go in the US Mail, huh. Just be sure you can prove you sent it.

It is not considered delivered if all you do is make it available on your website. You have to go a step further.

By the calls and emails I am receiving, I am discovering that many of you are not ready for TRID yet. If you are not my client, call me at (800) 656-4584 and let’s see what we can do about your compliance program.

Here is a link to the actual Toolkit. Take a look, today.

Filing Suspicious Activity Reports required by AML

SARS 090915

We all know about Anti Money Laundering. No matter what kind of lending we engage in, we must be on guard for suspicious activity. We are required to understand what constitutes suspicious activity (“SAR”) (hence Red Flags etc.) and we are also required by the AML statutes to report certain suspicious activities to FinCen.

Finwhat? The Financial Crimes Enforcement Network. The government clearing house and enforcement arm for AML and other activities. These are the people who collect and distribute suspicious activity reports.

So what constitutes suspicious activity? That is for a different post. When we complete annual AML Training, this is all  explained in detail. If you need a refresher course see pages 19-37 of our Compliance Manual Book One. If you are not my client call me and I will inform you.

First here are some documents I put together to walk you through the Banking Secrecy act Web Site, where you can create an account so when you have a SAR to file, it will be easier and quicker for you .

1 SARS reporting via BSA eFile 090915

YOU MUST FILE so you have two choices as I see it. Do it manually, writing it out and mailing or emailing it; or use the eFile system. I recommend you use the eFfile system.

Next here is the link to get to the BSA Web Site. When asked about your regulator pick your state regulator.


TRID Simplified…….Don’t lose hope…….you can do it…….the key is to keep calm and read on.

My regular clients will know what this is.

First, download the PDF and print it out.

Trid Simplified PDF Presentation 090315

Next, listen to this audio file. It is only 28 minutes long. There are a couple of minor issues, like when I speak of mortgages on mobile homes I needed to say NOT permanently attached. Also someone asked about the requirement for a signature on the Loan Estimate. There is no place for a borrower to sign. You have to be able to prove you provided it once the clock started ticking, and then prove you provided it again prior to “consummation” – according to the days required by the reg. here is the   language relied on  ” The consumer is not required to sign the Loan Estimate. The creditor may add a signature statement and have the consumer sign page 3 of the Loan Estimate in order to Confirm Receipt of the Loan Estimate by the consumer. If used by the creditor, the signature statement must contain the exact language from the model form. (§ 1026.37(n)(1))”

This is a lot easier than reading a 100 page “Quick Guide”……..

So shut up and dance.