Cheryl: Hi everybody and welcome to day three of Thread. Yes.
Speaker 2: Yes, it’s been a fun topic.
Cheryl: It has been a fun topic and I teach three-hour courses on this very subject. So trying to cram it all into five, two minute segments is really hard for me. Takes me half an hour to introduce myself.
Speaker 2: Well when we were going around training all the real estate brokerages as well, during that process, and kind of showing them what it was going to do. And it was actually good for me cause I learned a ton about it during the process as well.
Cheryl: Same.
Speaker 2: Yeah.
Cheryl: And a lot of agents were freaking out about it.
Speaker 2: They were, yeah.
Cheryl: So we talked last time about how it’s really been good for consumers, but there are a few things per the law that can make it so that you as the lender have to reissue a new closing disclosure to the consumer.
Speaker 2: That’s right.
Cheryl: What are some of those things?
Speaker 2: So the biggest one is if the APR goes up by more than an eight or 0.125. If it goes up by more than that, then we do have to reissue that and start that three day clock over. And that’s good for them because you need to have a reason for that and they need to understand what that reason is. And it gives you that opportunity to do that. Now that’s very rare. We just had one just yesterday actually that was lower. And so the nice thing about it being lower is-
Cheryl: Surprise.
Speaker 2: Yeah it’s lower and the three days doesn’t start over.
Cheryl: Yay.
Speaker 2: So if the eighth is for the better, you’re all set. But if it’s for the worst, absolutely you have to [crosstalk 00:01:25].
Cheryl: So anything above an eighth of a percent in change to the APR. I think we should do a totally separate and distinct episode about reminding them what APR actually is. The annual percentage rate and how that’s calculated and why that matters to your consumer and what you can not say as a real estate professional to make yourself look like an absolute idiot. So it is not the same thing as the interest rate. So don’t freak out when you see that. And what a tip is, because that is also on the closing disclosure, and that’s a great way for realtors to look like idiots.
Speaker 2: It is. So if you guys have any questions, just leave us a message below, we’d be happy to answer those and make sure you have a clear understanding of exactly how that works. And so until next time.
Cheryl: Absolutely, until next time when we talk about APR and tip, we’ll see you then.
Speaker 2: See you later.