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System Challenges with TRID
Overall, KHC has experienced a smooth transition with the new TILA-RESPA Integrated Disclosure (TRID) regulations. However, with anything new, there are a few glitches found in KHC's Loan Reservation System:
- When a lender clicks on Document Printing to generate the specific KHC forms, such as the underwriting checklist, child support certification, etc., the forms do not appear. In that same tab, Document Printing, click on "Upper Documents," the forms will appear.
- The first mortgage Loan Estimate and Intent to Proceed is generating for all lenders, but should only be utilized by KHC's Third Party Originator Lenders. Delegated and correspondent lenders are required to use their own company's Loan Estimate.
- The DAP Loan Estimate is showing the lender's name rather than KHC. KHC is accepting this disclosure as is. KHC funds the DAP for TPO Lenders. Delegated and correspondent lenders are required to fund the DAP but may use KHC's DAP LE and CD or their own company's LE and CD.
- The DAP fees are disclosed on page 2 of the LE but are currently not totaling on the first page.
KHC is diligently working with our system vendor to correct these issues. Stay tuned to KHC eGrams for updates about TRID. In the meantime, if you need assistance regarding KHC and TRID, please visit KHC's website, under Lenders, Lender Resources, TRID tab.
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TPO Lenders - Closing Agents
The new TRID regulation effective with new applications on or after Saturday, October 3, 2015, require TPO Lenders to use one of KHC's Approved Closing Agents. TPO lenders can find the list of Approved Closing Agents, including contact information and counties served, on KHC's website, under Lenders, Lender Resources, Third Party Originator (TPO) tab.
KHC has received many questions and concerns regarding the new Approved Closing Agents. As a result of heightened TRID regulation, KHC must now enter into a vendor relationship with TPO Closing Agents. To comply with such regulations, KHC is executing agreements with Closing Agents who close KHC loans originated by Third Party Originators. These loans close in KHC's name and are funded directly by KHC at the closing table.
KHC signed agreements with the top 15-20 closing agents statewide based on KHC loan volume. The closing agents agreed to one fee for settlement costs statewide. KHC's Legal Services and Compliance managed the approval process and determined the closing agent parameters for approval. KHC may add additional TPO closing agents at a later date, but, for now, KHC is not accepting additional closing agents.
Any loans that were reserved with KHC prior to October 3 will not be affected by these changes. Closing agents working with KHC's correspondent or delegated lenders are also not affected by this change.
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New KHC Manager of Closing and Quality Review
KHC welcomes Christie Fry as the new Manager of Closing and Quality Review in Single-Family Programs. Christie brings with her a background in processing, underwriting, closing, post-closing, and all the in between. Please give a big welcome to Christie! To contact Christie, call toll-free 800-633-8896 or 502-564-7630, extension 340; TTY 711; or email chfry@kyhousing.org.
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FHA 203K Streamline Program
Effective immediately, KHC will no longer offer the FHA 203K Streamline Program. KHC's Program Guides reflect these changes and are available on KHC's website, under Lenders.
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