- Business Rules
If we are a broker and close in our name and use our warehouse line to fund the loan, but then the loan is purchased from us after the closing, which name will go on the Loan Estimate as creditor?There is not sufficient information to completely answer this question. In many cases, as long as the "broker or mini-correspondent" is acting in the capacity as a creditor in a true secondary market transaction then their name will go on the Loan Estimate as creditor. However, based on the wording of the question it appears as though the concern stems from determining who is considered the actual creditor on the transaction. The answer, given the question, is more subjective than it may seem. You should refer to the CFPB "Policy Guidance on Supervisory and Enforcement Considerations Relevant to Mortgage Brokers Transitioning to Mini-Correspondent Lenders," which offers guidance on determination of the true creditor based on the "real source of funding" and the "real interest of the funding lender" for specific clarification in this scenario.
Citation(s): §1026.19(e)(1)(i); §1026.19(f)(1)(i); Policy Guidance on Supervisory and Enforcement Considerations Relevant to Mortgage Brokers Transitioning to Mini-Correspondent Lenders (issued July 11, 2014)
CFPB announcement regarding the delay of TRID
The full statement from CFPB Director Richard Cordray can be viewed here