What California Statement to Borrower and why

[Badbru]

I have a question. At my loan signing I signed a document called “California Statement to Borrower”. This paper had a payment schedule on it which showed my monthly mortgage payment which was 24 months at $1361 and 36months at $1917. And then the next payment would be $2,084. I remember at the time my asking the loan officer about the amount and being told that this was what my payment would be and I would be able to refinance before the increase. I have asked several people about this form including the loan officer and everyone says that this is an estimate of my payments. Is this legal ? No where on this form does it say that this is an estimate and if it is an estimate how come it increased in October to the exact amount on this form. If it is an estimate should it have been a different amount? I am very confused. If this form means nothing why did I sign it?.
Thanks,
Bru

This is California's answer to the federal TIL Disclosure and all of these payment skews are estimates to the best of the logarithms that the engines use to turn out these disclosures and they produce the data provided, on prior performance of these sorts/types of loans and the model of the Index, Cap, Margin and such....because is predicated on prior performance, it is utterly impossible to have them skew to the future exactly, the next payment stream may not be exact to this disclosure. The fact that yours did on this payment stream, is kind of nifty....they usually do not....I am impressed with the engine that they used to forecast the payment stream...

They are not an exact science and none of them are really that exact (yours appears to be a anomaly), neither are the TIL's, but they have to be in a range and as such if they are in that range they are perfectly acceptable in the disclosure world. So the fact that yours is exact...well they had a good system in place at closing, better than most....I would say.

That is why we recommend qualified forensic document review.

[Badbru]

Okay, in plain and simple english, why was this part of my loan doc? why did it required my signature? Why was I told that this is what my payments would be over the life of my loan or until I refinanced. If this piece of paper is no big deal, just a disclosure, why was I told that this is what my payment would be? And why does it say on this piece of paper payment schedule rather than "estimated" payment schedule or just that this is an disclosure or estimate. Is this standard practice? I don't think I am stupid or thick, I just want someone to explain this to me.
Thanks
Bru

This is a required disclosure according to the lender that you closed with and was in the package to meet disclosure requirements as the lender understood the regulations to be for the State of California.

This is standard practice, they do not represent the payments as an estimate at the final stage of closing...they represent this as a final document, the payment streams are not always accurate, however they are the best representation that they can provide given existing models that the computer uses to determine the payment stream over the life of the loan. The disclosure is supposed to meet certain standards and fall within the tolerances of these standards....

The fact that the payments are exactly as you are paying is due to the fact that what ever the lender used at closing to compute this document was very accurate. It requires you signature because all disclosures require your signature at closing, this is standard practice.

The final documents never say estimated it is understood that they are as exact as they can be within again the allowable tolerances for the standards required by the regulating authority. The only documents that state they are estimates are those at the time you do the loan application, but closing they are all final documents.