Implementing Home Equity Program


To provide small Credit Unions the expertise
and oversight to make closed-end home
equity loans to their members.

Transtar Federal Credit Union will provide a
leased employee to the small credit union to
review compliance of the loan to the small credit
unions policy. A finding of compliance or noncompliance will be issued for every home equity
loan that is reviewed. All non-compliant home
equity loans will come with a description of why
the loan did not comply.



Transtar Federal Credit Union will provide a
sample loan and ALM policy for each small credit
union.
Transtar Federal Credit Union will provide an
onsite employee for all home equity closings, if
requested.
Transtar Federal Credit Union will provide a
findings report for each reviewed loan noting
compliance or non-compliance. Each noncompliant home equity loans will come with a
description of why the loan did not comply.


Transtar Federal Credit Union will provide two
annual marketing campaigns and design cost for
the small credit unions use. The small credit
union will be responsible for the actual piece
cost.
Transtar Federal Credit Union will provide credit
union loss history on all of Transtar Federal
Credit Unions mortgage products including home
equity loans since inception.



All participating Credit Unions must complete the
Texas Credit Union Home Equity seminar prior to
beginning the program.
All participating Credit Unions must establish and
get approved by their board of director their own
Home Equity Lending Policy.
All participating Credit Unions must establish and
get approved by their board of director their own
Asset Liability Management Policy which should
include home equity tolerance levels versus their
capital position.



All participating Credit Unions must comply with all
Texas Mortgage lending laws and disclosure
requirement.
All participating Credit Unions must execute a
release, hold harmless and indemnity agreement
between Transtar Federal Credit Union and the small
credit union.
All participating Credit Unions must register their
mortgage loan originators in compliance with the
Consumer Financial Protection Bureau’s rules and
the Secure and Fair Enforcement for Mortgage
Licensing Act (“SAFE Act”).


All participating Credit Unions must provide their
own home equity documents. (Preferred
documents are CUNA Mutual’s closed ended fillable PDF’s)
The Small Credit Unions will retain 100% of the
loan and be responsible for the collection and
allowance of the loans.
Small Credit Union CE HE Program
HOME EQUITY ELECTRONIC
Number
ETX21*
ETX55*
EST22*
EST47*
EST51*
EST77*
MXX12*
MXX63*
RM002*
RM004*
ETX80*
ETX20*
ETX40*
ETX60*
ETX70*
RTX10*
Description
Deed of Trust/Mortgage - Closed End
TX CE HE Deed of Trust - HE Lending
Note/Disclosure
TX CE HE Note & Disclosure (Home Improvement)
Miscellaneous
HUD-1A Settlement Statement
Notice of Your Right to Cancel
HE Application
Good Faith Estimate
Truth in Lending Disclosure for Fixed Rate (RE or Dwelling)
Credit Score Exception Notice 1-4 Family (Also contains Fact Act Notice)
Servicing Disclosure
Appraisal Disclosure (C-9)
Miscellaneous - TX
TX HE CE Loan Officer Checklist
TX Notice to Borrower
TX Acknowledgment
TX HE Affidavit & Agreement
TX Receipt of All Documents
State Notices
TX Mortgage Fraud Notice
DOCUMENT QUOTE TOTALS
Annual
Amount
20M<
$416
Annual
Amount
50M<
$520
$540
$675
$192
$326
$288
$192
$72
$108
$72
$72
$240
$408
$360
$240
$90
$135
$90
$90
$192
$64
$70
$98
$192
$240
$80
$88
$123
$240
$116
$145
$3,010
$3,764
$3,010
$3,764
Paper to Laser or New Client Migration Discount Plan
60% 2013 30% 2014
Take 60% off 2013 Annual Amount & 30% off 2014 Annual Amount
$20M<
$1,204
$2,107
Annual Amount will be prorated for the balance of the year upon order.
$50M<
$1,506
$2,635
Pricing for 2014 may be subject to change.
Home Equity
Cost Benefit Analysis
Item Cost
2013
2014
2015
1,972.32
4,972.47
7,971.46
1,972.32
4,972.47
7,971.46
2,104.00
1,000.00
196.00
2,635.00
1,000.00
196.00
3,764.00
1,000.00
196.00
(196.00)
(196.00)
(196.00)
3,104.00
3,635.00
4,764.00
(1,131.68)
1,337.47
3,207.46
Income
2 Loans Interest (Feb. & July)
Total Income
(25K*7yrs@6%)
Daily Rate
4.109958
Expense
CUNA Forms
Cost to TFCU
Close Cost
- Lien Filing Expense
- Flood Report Expense
- Title Report Expense
Member Exp at Closing
Total Expenses
Bottom Line
12930 Northwest Freeway
Houston, Texas 77040
832-201-0190
Bill To:
CU Manager
ABC Federal Credit Union
1415 North Loop West, Suite 100
Houston, Texas 77008
713-869-9053
Invoice Due Date: 03/28/2013
DESCRIPTION
Re: Special Member/9999-0
Harris County Clerk/File Lien
WoltersKluwer/Flood Certificate
Stewart Title/Title Report
AMOUNT
$
500.00
$
32.00
$
16.00
$
50.00
Total
$
598.00
Remit to: Transtar Federal Credit Union
Attn: Accounts Receivable
12930 Northwest Freeway
Houston, TX 77040
Questions regarding this invoice may be directed to Rocky Hinojosa at 832-201-0177.