Card Utility Upgrade Deadline Approaching

This message is a reminder that the SentriCard Utility Upgrade deadline is approaching. Effective September 1st, anyone who is using a SentriCard Utility version below 4.0.7 will not have a supported Card Utility version and will no longer be able to update/renew their SentriCard or access anything through the SentriCard Utility Program.

In order to update to the most recent version of the SentriCard Utility Program, go to www.sentrilock.com/files and select the first link under “SentriLock SentriCard Utility for Windows or MAC” to download the installer and follow the prompts. Any agent that needs assistance with downloading the new SentriCard Utility Program may call our support team 513-618-5800 or Toll-Free 1-877-736-8745 and our support staff will be happy to walk them through the installation.

Again, this is a reminder that SentriCard Utility Programs older than version 4.0.7 will no longer be supported or accessible and may cause interruption in service if not updated. Please communicate this to the members of your association to prevent any service interruption after August 31st, 2015.

Thank you,
Sentrilock


June 2015: TRID May Impact Your Real Estate Transactions

TRID May Impact Your Real Estate Transactions

BY: RAMENEH K. TORRES, ATTORNEY AT LAW

The Consumer Financial Protection Bureau (“CFPB”) was tasked with integrating the TILA and RESPA to make TRID, which consolidates four existing disclosures into two forms:
Loan Estimate (formerly the initial Truth-in-Lending and Good Faith Estimate)
Closing Disclosure (formerly HUD-1 and Final Truth-in-Lending).

The TRID disclosures are designed to make the loan process more understandable for consumers, and the two disclosures have the same alphabetical breakdown and structure so that the forms can be cross-referenced for ease and simplicity. Furthermore, the forms now look similar to other forms. The main purpose behind the TRID integration is to help consumers shop for the best loan, guard against hikes in charges at closing, and understand future obligations. Communication between REALTORS® and vendors will be more important than ever, and agents will need to talk to loan officers to ensure that clients have smooth transactions.

The Application

Once a loan originator obtains six pieces of information from a
consumer, the application is considered to have been received.
The six pieces of information can be remembered using the
acronym ALIENS:

Address,
Loan amount,
Income,
Estimated value of property,
Borrower’s Name, and,
Social Security Number.

These six pieces of information do not need to be obtained in a
formal manner. They can be sent in an email, text message, or
scrawled on a cocktail napkin. This is important to note because
the lender must send a Loan Estimate within 3 business days of
receiving the application.

Loan Estimate

The Loan Estimate (“LE”) replaces the Good Faith Estimate and the Early Truth-in-Lending. The LE must be delivered, or placed in the mail, by the lender or mortgage broker no later than the third (3rd) business day after receiving the consumer’s application. Ultimately, the actual lender is responsible for the LE, but the Mortgage Broker may provide the LE. Lenders and Mortgage Brokers may not charge any upfront fees for the LE, with the exception of a reasonable fee for a credit report.

The benefits of the Loan Estimate are that there are clearly defined terms and lock status. New features on the LE also include a breakdown of what the interest will be in five years, and the total interest percentage.

There is a seven (7) day mandatory waiting period after receiving the LE before the borrower can consummate the transaction. This waiting period may only be waived if the consumer has a bona fide personal financial emergency that necessitates consummating the transaction prior to the end of the seven-day period. While this will be determined on a case-by-case factual basis, the only examples that have been given by the CFPB of a bona fide personal financial emergency are the imminent sale of the consumer’s home at foreclosure, or imminent bankruptcy.

If the lender makes any mistakes on the LE that are harmful to the lender, the lender cannot change the LE to correct the mistakes. The terms on the LE can only be changed if there are changed circumstances—forgetting something or accidentally using the wrong terms are not considered changed
circumstances, and the lender will be responsible for any difference in the loan amount.

A consumer has ten (10) days to give their intent to proceed upon issuance of the LE. This is being referred to as the 10 day “shopping period,” where consumers have the option to shop lenders while still keeping their options open on any LE issued to them. The CFPB defines “days” as business days. For the LE, a business day considered to be any day in which the creditor is open to the public for carrying out substantially all of its business functions. It will be important for REALTORS® to be aware of the days lenders are open for business, and if certain lenders differ in the days they are open.
If a new LE is needed, (e.g. for a new property), the waiting period starts over. If there is a “changed circumstance” and a LE needs to be revised, the revised LE must be given a minimum of four (4) days before closing. There are several items that cannot increase once locked in on the LE, including: creditor’s or broker’s charges for its own services; charges for services provided by an affiliate; or charges where the consumer is not permitted to shop.

There is a signature line on the LE but the borrower does not have to sign the LE. In fact, even if the borrower does sign the LE it does not mean that they have given their intent to proceed. The intent to proceed can be indicated in any manner; however lenders should get it in writing to be safe. No one can impose a fee, with the exception of a fee for a credit report, on the borrower until the borrower has both: 1) received the LE and 2) given their intent to proceed.

Closing Disclosure

The Closing Disclosure (“CD”) replaces the HUD-1 and the Final Truth-in-Lending. The CD must be given three (3) business days prior to signing, or “consummation,” of the transaction. The transaction is consummated when the consumer becomes contractually obligated to the creditor. Once again, the three-day period may only be waived if there is a bona fide personal financial emergency and there is a written statement by the consumer. For the CD, business days are defined as Monday – Saturday, not including certain specific Federal Holidays.

REALTORS® should be aware of which holidays are excluded so they can stay aware of their timelines in the escrow process, and should also take note of how “business days” are defined differently than they are for the LE.

If there are any changes to the CD the consumer must be given a new CD one (1) day prior to signing. For example, if a builder suddenly allows upgrades that change the purchase price, a new CD will be needed, and an additional one (1) day will be added to the close of escrow. There are limited changes that do require a new three-day waiting period, which are: changes above APR tolerance; change to loan product; and, the addition of prepayment penalty.

The real estate commissions are much more prominently noted  on the new CD than they were on the HUD-1. There is also better tracking of the parties, as the lender, broker, listing agent, sales agent, and mortgage broker each have their license numbers, phone numbers and addresses listed on the CD.

Details that REALTORS® Should Know

  • Borrowers will get a “home loan toolkit” on purchase transactions so they know who or where they can go if they have an issue with their lending. Agents can prepare their buyers with a “Buyer Information Packet” available through CFPB.
  • Lenders must provide the LE and CD unless the loans are made by persons not considered creditors because they finance five or fewer mortgages per year (aka seller financed).
  • All documentation must go directly from the borrower to the lender, for control purposes.
  • Agents should give an extra 15 days of leeway on escrow, and be mindful to keep clients informed of the extra time that may be needed as all the kinks of the new process are rolled out.
    • Buyers should not expect to make any changes at closing and Sellers should not do anything that would require changes at closing.
  • Prior to receiving an intent to proceed, a lender cannot charge any fees to the borrower, with the exception of a reasonable fee for a credit report.
    • Lenders cannot take a borrower’s credit card number to store for future use or need, cannot take a postdated check, and an agent cannot pay a fee on behalf of a borrower.
  • Many lenders will now have an “approved providers” list for the Borrower’s choice of escrow.
    • Lenders have strict standards to uphold, and are ultimately responsible for everything on the CD. The lender cannot sign away this  responsibility.
  • A lender cannot require the borrower to submit information, such as the purchase agreement or other documentation, until after the borrower has received the LE.

The biggest area of concern and confusion in the implementation of TRID is regarding borrower pre-approval. Lenders cannot require any information from the borrower, which has many asking how a pre-approval will be done at all. If the information is needed to assess if they can qualify, but they cannot require the information, will any lender be willing to do a pre-approval? If you obtain all six items that are required for an application during the pre-approval period (ALIENS), a LE must be completed.

* * *

TRID applies to most consumer credit transactions secured by real property, excluding home equity lines of credit (HELOCs), reverse mortgages, or mortgages secured by a mobile home not attached to real property. Currently, the new disclosures must be provided by a creditor or mortgage broker that receives an application on or after August 1, 2015. The CFPB has proposed to delay the new TRID rules to start on October 3, 2015, and that date change is awaiting public comment before it can be finalized. If the implementation is August 1, or October 3, the deadlines and requirements will not change.

 


Supra Maintenance Notification – June 30th

Dear Valued Customers,

On Tuesday, June 30th starting at 5:30pm PDT and ending at 8:00pm PDT, Supra will be conducting routine maintenance at our data center.  We expect the outage for key syncing to be less than 1 hour but you could experience intermittent outages during the entire maintenance window.

How will Updates be Available?

What will NOT be Working?

  • SupraNET
  • DisplayKEY eSYNCs
  • eKEY Syncs and Wireless Updating
  • Automated Phone Payments (IVR system)

What WILL be Working?

  • SupraWEB
  • KIM Voice
  • ActiveKEY Automatic Updates

Thank you,
Supra


May 2015: California Association of REALTORS® Releases New & Revised Forms

BY: EDWARD J. ZORN, ATTORNEY AT LAW
CASEY MCINTOSH, PARALEGAL

The California Association of REALTORS® released four (4) new and six (6) revised forms on April 27, 2015.

New Forms
Buyer Amendment to Escrow Instructions (BAEI) | Seller Amendment to Escrow Instructions (SAEI)
The BAEI and SAEI were created by C.A.R. following the changes to the Residential Purchase Agreement that were implemented late last year. According to C.A.R., these two new forms satisfy the requirement of the “Department of Business Oversight, [a] government body with regulatory authority over independent escrow holders.” The SAEI and BAEI allow independent escrow holders to release a deposit in the absence of signed mutual instructions. The forms state,

“If either Party fails to execute mutual instructions to cancel, one Party may make a written demand to Escrow Holder for the deposit (C.A.R. Form BDRD or SDRD). Escrow Holder, upon receipt, shall promptly deliver notice of the demand to the other Party. If, within 10 Days After Escrow Holder’s notice, the other Party does not object to the demand, Escrow Holder shall disburse the deposit to the Party making the demand. If Escrow Holder complies with the preceding process, each Party shall be deemed to have released Escrow Holder from any and all claims or liability related to the disbursal of the deposit.”

Ultimately, these forms will allow escrow to release a deposit following the cancellation of the escrow instructions as set forth in the RPA.

Independent Contractor Agreement with Binding Arbitration Option (ICA-BA)
This agreement between broker and associate-licensee includes a binding arbitration clause, to be enacted in the event that the broker and associate-licensee cannot resolve any disputes that may arise through mediation. According to the form,

“Such claims would include, without limitation, any concerning the initiation of the work relationship, the pay or other compensation for the work performed, breach of contract, expenses, any claims by Broker or Associate-Licensee for violations of applicable law or regulations, the decision by Broker or Associate-Licensee to end the assignment, any claims for conversion and/or breach of fiduciary duty, as well as any claims that arise from or relate to Broker’s classification of Associate-Licensee as an independent contractor rather than an employee.”

The broker will be responsible for all costs of the arbitration, which will be conducted through JAMS at an office closest to the county of the broker’s office with which the associate-licensee was associated. However, each party shall pay their own attorneys’ fees and costs.

Independent Contractor Agreement with Mediation (ICA-NA)
This agreement between broker and associate-licensee contains a clause that makes mediation the mandatory first step to resolve disputes. Unlike the ICA-BA, described above, if disputes are not resolved through mediation, the broker and associate-licensee may submit the matter to binding arbitration, but it is not required.

Revised Forms
C.A.R. also made minor modifications to the below forms, “such as updates to code references and changing reference to BRE to CalBRE, to satisfy CalBRE requirements”

  • Options and Upgrades Addendum to New Construction Residential Purchase Agreement (NCA)
  • New Construction Property Disclosure Statement (NCDS)
  • Common Interest Subdivision Supplemental Escrow Instructions (NCEI)
  • New Construction Notice of Completion and Notice to Close Escrow (NCNC)
  • New Construction Residential Purchase Agreement and Joint Escrow Instructions (NCPA)
  • New Construction Addendum to RPA-CA (NCRPA)

Silent Revisions to the Residential Purchase Agreement
According to C.A.R., there will also be numerous “silent revisions” to the Residential Purchase Agreement, including:

  • Paragraph 1B (Property Identification) is being reformatted to eliminate duplicate language.
  • Language is being added to Paragraph 3C (All Cash Offer) to make explicit that the sale is not contingent upon buyer obtaining a loan.
  • Paragraph 7D(6) (Allocation of Costs—Other Costs) is being revised to indicate the buyer has the responsibility to pay for any requested HOA Certification fees.
  • Language in paragraph 10A(4) (Statutory and Other Disclosures) is being modified to clarify that if the seller will not be providing a Transfer Disclosure Statement (TDS) or a Seller Property Questionnaire (SPQ), then the seller is obligated to provide a Supplemental Contractual and Statutory Disclosure (SSD).
  • Paragraph 14C (Time Periods; Removal of Contingencies; Cancellation Rights—Seller Right to Cancel) will be modified to clarify that if the buyer does not assume or accept leased items, the seller may give the buyer a Notice to Buyer to Perform (NBP).
  • The Exclusion from Mediation and Arbitration Paragraph (22C) is being modified to specifically mention that filing a lawsuit to preserve a statute of limitation is allowed without violating the mediation or arbitration requirement.
  • Language is being added to the bottom of page 10 to specifically allow the buyer to acknowledge that the last page is part of the agreement.

As usual, should you have any questions regarding new, revised, or even old forms, contact your local REALTOR® association or qualified legal counsel.

 

May 2015 Newsletter_New Forms


Supra Maintenance Notification – May 26th

Dear Valued Customers,

On Tuesday, May 26th starting at 5:30pm PDT and ending at 8:00pm PDT, Supra will be conducting routine maintenance at our data center.  We expect the outage for key syncing to be less than 1 hour but you could experience intermittent outages during the entire maintenance window.

How will Updates be Available?

What will NOT be Working?

  • SupraNET
  • DisplayKEY eSYNCs
  • eKEY Syncs and Wireless Updating
  • Automated Phone Payments (IVR system)

What WILL be Working?

  • SupraWEB
  • KIM Voice
  • ActiveKEY Automatic Updates

Thank you,

Supra Support Team


Supra Maintenance Notification – April 28th

Dear Valued Customer,

On Tuesday, April 28th starting at 5:30pm PDT and ending at 8:00pm PDT, Supra will be conducting routine maintenance at our data center.  We expect the outage for key syncing to be less than 1 hour but you could experience intermittent outages during the entire maintenance window.

How will Updates be Available?

What will NOT be Working?

  • SupraNET
  • DisplayKEY eSYNCs
  • eKEY Syncs and Wireless Updating
  • Automated Phone Payments (IVR system)

What WILL be Working?

  • SupraWEB
  • KIM Voice
  • ActiveKEY Automatic Updates

Thank you,

Supra Support Team


Updated eKEY® app for Apple iOS devices

Dear Customer,

A new version of the eKEY® app for Apple devices is now available for download at the Apple App Store™. This new version fixes the reauthorization 9B0D error that some users have experienced recently. This eKEY app is for iOS versions 5.1.1 and newer.

To view the current list of compatible eKEY devices, please click here.

Thank you,

Supra Support Team


Sentrilock Box Exchange Coming Soon

SRCAR® will be offering a Lockbox Exchange in the coming months (exact date to be determined).  What this means is that if you have a Sentrilock box and you would like to exchange it for a Supra Lockbox this will be your opportunity. It will be a one for one exchange.  This exchange will apply to all Sentrilock boxes you have purchased from SRCAR® or HSJAOR.

Should you wish to keep your Sentrilock Keycard, SRCAR® has agreed to continue that service with Sentrilock, for those who buy and sell outside our area.

Although, you can continue to use the Sentrilock boxes,  SRCAR® will no longer acquire new Sentrilock boxes.

Start checking your lockbox inventory.  Make sure that if you have any of the Sentrilock  boxes that they are registered in your name.  If you aren’t sure, please call the Association’s and we will confirm the information in advance for you.

If you have purchased Sentrilock boxes from another agent, please make sure that you notify the Association office with a letter from the selling owner , or receipt of sale, so that your records will be current.  In the event that you did not notify the Association of a transfer, those boxes will show under the previous owner’s name and you may not be able to exchange them.

In order to participate in the exchange, you must be able to bring your Sentrilock boxes in so that you may receive a new Supra Lockbox in return.  Unfortunately, if you cannot bring in the box, during the designated exchange period, we will be unable to exchange it for a new one.

While more details will be forthcoming, the Southwest Riverside County Association of REALTORS® wanted you to have as much time as possible to prepare.

Remember, look for more details in the coming weeks and be prepared for the Supra Lockbox Exchange coming later this year.


Supra Projected Maintenance Schedule for 2015

Dear Supra Customer,

Supra conducts periodic maintenance to its data center operations. Please see the maintenance schedule at the bottom of this message for the remainder of 2015.

Note that during these planned maintenance events, the following services will be unavailable to Supra users:

  • Key Syncs and Wireless updates
  • SupraNET
  • Billing information, bill pay or pay by phone

Supra keyholders in need of an update code during a planned maintenance may get one from:

SupraWEB: www.supraekey.com

KIM Voice:  866-968-4032

We will only use these outage windows if needed and we will strive to minimize impact on keyholders during these times.

Outage dates for the remainder of 2015, the last Tuesday of every month during the hours 5:30 PM Pacific time to 8:30 PM Pacific time, are:

April 28

May 26

June 30

July 28

August 25

September 30

October 27

November 24

December 29

 

Thank you,

Supra Support