Docs on Demand

The CFPB has published the first set of Frequently Asked Questions on the TRID Rule as it applies to construction loans. Following is a link to the FAQs along with the two questions answered.

TILA-RESPA Integrated Disclosure FAQs: https://www.consumerfinance.gov/policy-compliance/guidance/tila-respa-disclosure-rule/tila-respa-integrated-disclosure-faqs/

Construction Loans

QUESTION 1. Are construction-only loans or construction-permanent loans covered by the TRID Rule?

QUESTION 2. Are there special disclosure provisions for construction-only or construction-permanent loans under the TRID Rule?

TILA-RESPA Integrated Disclosure FAQs | Consumer Financial Protection Bureau Frequently asked questions (FAQs) on the TILA-RESPA Integrated Disclosure (TRID) rule, also known as Know Before You Owe (KBYO).

The CFPB issued on April 26, 2018 a final rule (2018 TILA-RESPA Rule) addressing when a Closing Disclosure may be used to reset tolerances under the TILA-RESPA Integrated Disclosure Rule. The 2018 TILA-RESPA Rule is effective 30 days after its publication in the Federal Register.

Currently, a creditor may only use a Closing Disclosure to reset tolerances if there are fewer than four business days between the time the creditor is required to provide the Closing Disclosure reflecting the revised estimate and consummation. The 2018 TILA-RESPA Rule removes this four business day limit on a creditor’s ability to reset tolerances with a Closing Disclosure. Thus, if a changed circumstance or another triggering event has occurred, the 2018 TILA-RESPA Rule permits a creditor to reset tolerances with either an initial or corrected Closing Disclosure regardless of the number of days between consummation and the date the Closing Disclosure reflecting the revised estimate is required to be provided to the consumer. The creditor must provide the consumer with the Closing Disclosure reflecting the revised estimate at or before consummation and within three business days of receiving information sufficient to establish that the changed circumstance or other triggering event has occurred. Additionally, the consumer must still receive an initial Closing Disclosure at least three business days prior to consummation. A new three-day waiting period is only required for a corrected Closing Disclosure if the APR becomes inaccurate, a prepayment penalty is added, or the loan product changes from the loan product previously disclosed.

Executive Summary of the 2018 TILA-RESPA Rule:
https://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/tila-respa-disclosure-rule/

Final 2018 TILA-RESPA Rule:
https://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/federal-mortgage-disclosure-requirements-under-truth-lending-act-regulation-z/

Federal Mortgage Disclosure Requirements under the Truth in Lending Act (Regulation Z) | Consumer Financial Protection Bureau The Bureau is amending Federal mortgage disclosure requirements under RESPA and TILA that are implemented in Regulation Z.

The CFPB has published on its website annotated versions of the Loan Estimate and Closing Disclosure that provide citations to the disclosure provisions in Chapter 2 of the Truth in Lending Act (TILA) referenced in the preamble of the Integrated Mortgage Disclosure final rule, 78 Fed. Reg. 79,730 (Dec. 31, 2013).

Following are direct links to the documents:

Loan Estimate:http://files.consumerfinance.gov/f/documents/201605_cfpb_loan-estimate-with-truth-in-lending-act-disclosure-citations.pdf

Closing Disclosure:http://files.consumerfinance.gov/f/documents/201605_cfpb_closing-disclosure-with-truth-in-lending-act-disclosure-citations.pdf