For loans that require a Loan Estimate, which include most closed-end mortgage loans secured by real property) and that proceed to closing, creditors must provide a new Closing Disclosure reflecting the actual terms of the transaction. The creditor is required to provide the consumer Closing Disclosure at least three business days before consummation. The CFPB says that “business day” for purposes of the Closing Disclosure is the rescission-based business day definition, and means all calendar days except Sundays and legal public holidays. According to the CFPB, creditors may estimate fees using the best information reasonably available when the actual cost is not available at the time the Closing Disclosure must be delivered. “However, creditors must act in good faith and use due diligence in obtaining the information,” the CFPB states in its examination procedure manual. “The creditor normally may rely on the representations of other parties in obtaining the information, including, for example, the settlement agent.” A corrected Closing Disclosure containing the actual terms of the transaction must be provided at or before consummation. If the creditor provides a corrected disclosure, it must provide the consumer with an additional three-business-day waiting period prior to consummation if:
The creditor is responsible for ensuring that the Closing Disclosure meets the content, delivery and timing requirements. If the Closing Disclosure is provided in person, it is considered received by the consumer on the day it is provided. If it is mailed or delivered electronically, the consumer is considered to have received the Closing Disclosure three business days after it is delivered or placed in the mail. If the creditor mails the disclosure six business days prior to consummation, it can assume that it was received three business days after sending, and therefore three business days prior to consummation, according to the CFPB. Creditors may contract with settlement agents to provide the Closing Disclosure to consumers, provided the settlement agent complies with all relevant requirements. The rule does not indicate that any specific proof is needed to show the Closing Disclosure was placed in the mail. Similar to contract law, if the sender places the Closing Disclosure in the mail, has it addressed to the consumer properly and has proper postage, it is assumed to be received by the consumer three business days later. The sender could always mail the Closing Disclosure certified or require a signature upon receipt if they wanted to have proof it was delivered properly, but that is not required by the rule. This highlights the importance of having documented policies and procedures. Title production systems should be able to create records of when the Closing Disclosure was generated. Having policies showing when a company places documents in the mail can go a long way to showing a strong pattern of compliance. Also, some postal services allow customers to generate postage (instead of stamps) and create a log of each envelope that is post marked. Lastly, while the examples the CFPB provides in the rule all focus on physical delivery of the disclosure, electronic delivery is allowed in accordance with the E-SIGN or Uniform Electronic Transaction Act laws. The timing requirements are the same as for physical delivery and would require obtaining some evidence of receipt (i.e., an email confirmation, system log or other indicia) or complying with the mailbox rule for presuming receipt three days after placing the documents in the mail. Creditors and settlement agents also may agree to divide responsibility with regard to completing the Closing Disclosure, with the settlement agent assuming responsibility to complete some or all the Closing Disclosure. In these situations, the creditor must maintain communication with the settlement agent to ensure that the Closing Disclosure and its delivery satisfy regulatory requirements, The creditor is legally responsible for any errors or defects. In transactions involving a seller, the settlement agent is required to provide the seller with the Closing Disclosure reflecting the actual terms of the seller’s transaction no later than the day of consummation. Multiple consumers In transactions that are not rescindable, the Closing Disclosure may be provided to any consumer with primary liability on the obligation. In rescindable transactions, the creditor must provide the Closing Disclosure separately and meet the timing requirements for each consumer who has the right to rescind under TILA. The consumer may waive the three-day period if there is a bona fide personal financial emergency. Bona-fide personal financial emergencies are extremely rare. Determining whether one exists is fact intensive. The only example provided by the Bureau is the imminent sale of the consumers home through foreclosure where the proceeds of the new mortgage can save the home from foreclosure.
According to the Consumer Financial Protection Bureau’s final rule, the creditor must deliver the Closing Disclosure to the consumer at least three business days prior to the date of consummation of the transaction. (Note that the Closing Disclosure and Loan Estimate must be implemented by Oct. 3, 2015, on certain loans. In the final rule, the CFPB said creditors may use settlement agents to provide the Closing Disclosure, provided that the settlement agents comply with the final rule’s requirements for the Closing Disclosure. As an example, if settlement is scheduled for Thursday then the Closing Disclosure can be hand delivered on Monday. A company could also deliver the disclosure by courier or other shipping or postal service so long as a signature is obtained from the borrower showing receipt on Monday. If a company does not use a service that provides evidence that the disclosure was received on Monday (ie: U.S. Postal Service first class mail), then it must send the disclosure by the prior Thursday. Use the chart below to help you determine when the Closing Disclosure should be sent to ensure the buyer receives it three days prior to consummation of the transaction. Generally, if changes occur between the time the Closing Disclosure form is given and the closing, the consumer must be provided a new form. When that happens, the consumer must be given three additional business days to review that form before closing. The CFPB listened to ALTA concerns and limited the instances that would require a new Closing Disclosure to be issued. Limiting the instances of delays in real estate transactions will help to ensure a positive experience for the consumer at the closing table. Changes that require creditors to provide a new Closing Disclosure and an additional three-business-day waiting period after receipt include:
Some quick definitions can be helpful when understanding this rule. First, the starting point for determining when the three-day period starts is the day of consummation. Consummation is the day the consumer becomes contractually obligated on the loan (i.e., the day they sign the note). This is typically the same day as closing (12 C.F.R. §§ 1026.2(a)(13) & 1026.38(a)(3)(ii)). Once you have the right starting point then you need to count backwards. The three-day rule requires the counting of “business days,” which are “all calendar days except Sundays and the legal public holidays specified in 5 U.S.C. 6103(a), such as New Year's Day, the Birthday of Martin Luther King, Jr., Washington's Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day and Christmas Day.” It is not a 72-hour requirement, but rather a day requirement so you do not need to know the time that closing will take place. Lastly, while the examples the CFPB provides in the rule all focus on physical delivery of the disclosure, electronic delivery is allowed in accordance with the E-SIGN or Uniform Electronic Transaction Act laws. The timing requirements are the same as for physical delivery and would require obtaining some evidence of receipt (i.e., an email confirmation, system log or other indicia) or complying with the mailbox rule for presuming receipt three days after placing the documents in the mail.
It depends on the type of change. As discussed below, there are three types of changes that require a creditor to ensure that the consumer receives a corrected Closing Disclosure at least three business days before consummation. For other types of changes, a creditor is not required to ensure that the consumer receives a corrected Closing Disclosure at least three business days before consummation, but is required to ensure that the consumer receives a corrected Closing Disclosure at or before consummation. A creditor must ensure that a consumer receives an initial Closing Disclosure no later than three business days before consummation. 12 CFR § 1026.19(f)(1)(ii)(A). If the disclosed terms change after the creditor has provided the initial Closing Disclosure to the consumer, the creditor must provide a corrected Closing Disclosure to the consumer. Unless the change is one of the three types of changes discussed below, it is sufficient if the consumer receives the corrected Closing Disclosure at or before consummation. 12 CFR § 1026.19(f)(2)(i). This means that, for most types of changes, the creditor can consummate the loan without waiting three business days after the consumer receives the corrected Closing Disclosure. However, the creditor must ensure that a consumer receives the corrected Closing Disclosure at least three business days before consummation of the transaction if: (1) the change results in the APR becoming inaccurate; (2) if the loan product information required to be disclosed under the TRID Rule has become inaccurate; or (3) if a prepayment penalty has been added to the loan. 12 CFR § 1026.19(f)(2)(ii). Any of these three types of changes triggers a new three business-day waiting period, and the creditor must wait three business days after the consumer receives the corrected Closing Disclosure to consummate the loan. More information on the timing requirements for providing initial Closing Disclosures and corrected Closing Disclosures is available in Sections 11 and 12 of the TILA-RESPA Rule Small Entity Compliance Guide . Updated Jan. 25, 2019 The answer depends on whether the overstated APR that was previously disclosed on the Closing Disclosure is accurate or inaccurate under Regulation Z. If the overstated APR is accurate under Regulation Z, the creditor must provide a corrected Closing Disclosure, but the creditor is permitted to provide it at or before consummation without a new three business-day waiting period. 12 CFR § 1026.19(f)(2)(i). If the overstated APR is inaccurate under Regulation Z, the creditor must ensure that a consumer receives a corrected Closing Disclosure at least three business days before the loan’s consummation (i.e., the inaccurate APR triggers a new three-business day waiting period). 12 CFR § 1026.19(f)(2)(ii). A disclosed APR is accurate under Regulation Z if the difference between the disclosed APR and the actual APR for the loan is within an applicable tolerance in Regulation Z, 12 CFR § 1026.22(a). For transactions secured by real property or a dwelling, Regulation Z includes several tolerances that might apply, including a tolerance whereby the disclosed APR is considered accurate if it results from the disclosed finance charge being overstated. See 12 CFR § 1026.22(a)(4). For example, if the APR and finance charge are overstated because the interest rate has decreased, the APR is considered accurate. Thus, the creditor may provide the corrected Closing Disclosure to the consumer at consummation, and is not required to ensure that the consumer receives the corrected Closing Disclosure at least three business days before consummation. Additional information related to APR accuracy is available in the Federal Reserve’s Consumer Compliance Outlook, First Quarter 2011 available at: www.consumercomplianceoutlook.org/2011/first-quarter/mortgage-disclosure-improvement-act/ . Updated Jan. 25, 2019 No. Section 109(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (2018 Act) did not change the timing for consummating transactions if a creditor is required to provide a corrected Closing Disclosure under the TRID Rule. Section 109(a) of the 2018 Act, which is titled “No Wait for Lower Mortgage Rates,” amends Section 129(b) of the Truth in Lending Act (TILA). TILA Section 129(b) governs when certain disclosures must be provided for high cost mortgages and the waiting periods for consummating a transaction after the creditor has provided those high cost mortgage disclosures. 15 U.S.C. § 1639. For more information on high cost mortgages, see Regulation Z, 12 CFR §§ 1026.31, .32, and .34. As discussed in the FAQs above, if the APR disclosed pursuant to the TRID Rule becomes inaccurate, the creditor must ensure that a consumer receives the corrected Closing Disclosure at least three business days before consummation of the transaction. 12 CFR § 1026.19(f)(2)(ii). This requirement arises from TILA Section 128, 15 U.S.C. § 1638, and is separate and distinct from the waiting period requirement in TILA Section 129(b). Therefore, Section 109(a) of the 2018 Act did not create an exception to the waiting period requirement under TILA Section 128, and does not affect the timing for consummating transactions after a creditor provides a corrected Closing Disclosure under the TRID Rule. However, as noted in the FAQ above, an overstated APR is not inaccurate if it results from the disclosed finance charge being overstated, and a creditor is not required to provide a new three-business day waiting period in these circumstances. Thus, if the disclosed APR decreases due to a decrease in the disclosed interest rate, a creditor is not required to provide a new three-business day waiting period under the TRID Rule. Updated Jan. 25, 2019
Yes. As the Bureau noted in finalizing the 2017 changes to the TRID Rule, a creditor is deemed to be in compliance with the disclosure requirements associated with the Loan Estimate and Closing Disclosure if the creditor uses the appropriate model form and properly completes it with accurate content. 82 Federal Register 37,761-62. See also 15 U.S.C. § 1604(b). Appendix H to Regulation Z includes blank model forms illustrating the master headings, headings, subheadings, etc., that are required by Regulation Z, 12 CFR §§ 1026.37 and 1026.38. These blank model forms for the Loan Estimate are H-24(A) and (G) and H-28(A) and (I). For the Closing Disclosure, they are H-25(A) and (H) through (J), and H-28 (F) and (J). Appendix H to Regulation Z also includes non-blank model forms. These non-blank model forms for the Loan Estimate are H-24(B) through (F) and H-28(B) through (E). For the Closing Disclosure, they are H-25(B) through (G) and H-28(G) and (H). To the extent that the appropriate model form is properly completed with accurate content, the safe harbor is met. The safe harbor applies even if the model form does not reflect the changes to the regulatory text and commentary that were finalized in 2017. For example, the regulatory text provides that the percentage amount required to be disclosed on the Loan Estimate line labeled “Prepaid Interest ( ___ per day for __ days @__ %)” is disclosed by rounding the exact amount to three decimal places and then dropping any trailing zeros that occur to the right of the decimal point. 12 CFR § 1026.37(g)(2)(iii) and (o)(4)(ii). However, on page 2 of model form H-24(C), section F, the interest rate disclosed on the line for prepaid interest includes two trailing zeros that occur to the right of the decimal point. Thus, a creditor could claim the safe harbor by disclosing the interest rate on the “Prepaid Interest” line by including two trailing zeros, or otherwise could comply with § 1026.37(o)(4)(ii) by rounding the exact amount to three decimal places and dropping any trailing zeros that occur to the right of decimal point. For example, assuming that the interest rate for the transaction being disclosed is four percent, the creditor could claim the safe harbor by disclosing “4.00%” (consistent with the model form) although it also could disclose “4%” (consistent with the regulatory text and commentary). Updated Jan. 25, 2019
Yes, most closed-end consumer mortgage loans to finance home construction that are secured by real property are covered by the TRID Rule. 12 CFR § 1026.19(e)(1)(i). Both construction-only loans (i.e., usually shorter term loans with several fund disbursements where the consumer pays only accrued interest until construction is completed) and also construction-permanent loans (i.e., construction loans that convert to permanent financing once construction is completed in which the loan amount is amortized just as in a standard mortgage transaction) can be covered by the TRID rule if the coverage requirements are met. Comment 17(c)(6)-2. Additionally, both initial construction and subsequent construction can be covered by the TRID Rule. Comment 17(c)(6)-2. Generally, a loan, including a construction-only and construction-permanent loan, is covered by the TRID Rule if it meets the following coverage requirements:
More information on the coverage of the TRID Rule and disclosing Construction Loans is available in Section 4 and Section 14, respectively, of the TILA-RESPA Rule Small Entity Compliance Guide . Updated May 31, 2019 Yes. Among others, special disclosure provisions in Regulation Z are contained in:
Note that § 1026.17(c)(6) and Appendix D existed prior to the TRID Rule. The TRID Rule amended the text of Appendix D and the commentary to both pre-existing provisions. The three special provisions listed above for construction-only or construction-permanent loans work in conjunction with the other generally applicable disclosure provisions of the TRID Rule. They are available to any creditor, regardless of whether or not the creditor typically considers themselves a construction loan lender. Further, these provisions apply even if the creditor does not necessarily label the product as construction-only or construction-permanent, so long as the product meets the requirements discussed in each provision. Section 1026.17(c)(6): Separate or Combined Disclosures for Construction Loans Section 1026.17(c)(6) permits a creditor to treat a construction-permanent loan as either one transaction, combining the construction and permanent phases, or multiple transactions, where each phase is a separate transaction. For purposes of complying with the TRID Rule, § 1026.17(c)(6) means the creditor may provide separate construction phase and permanent phase financing Loan Estimates and Closing Disclosures or may disclose a construction-permanent loan on one, combined Loan Estimate and Closing Disclosure. Appendix D to Part 1026: Methods of Estimating Disclosures for Construction Loans Appendix D provides methods that may be used for estimating the construction phase financing disclosures, whether disclosed separately or combined with the permanent phase financing. Because many disclosure items for the construction financing would otherwise be based on the best information reasonably available at the time of disclosure, Appendix D provides special procedures and assumptions creditors may use to provide consistent and compliant disclosures. For example, in cases where the timing of advances or the amount of advances in the construction phase is unknown at or before consummation, Appendix D provides methods to estimate the amounts used for the disclosure of periodic payments for the loan, which typically are interest-only payments for the construction phase, or the disclosure of amounts based on the periodic payment. Section 1026.19(e)(3)(iv)(F): Optional Disclosure for New Construction Loans Section 1026.19(e)(3)(iv)(F) permits creditors, in certain instances involving new construction, to use a revised estimate of a charge for good faith tolerance purposes. A new construction loan is a loan for the purchase of a home that is not yet constructed or the purchase of a new home where construction is currently underway, not a loan for financing home improvement, remodeling, or adding to an existing structure. Nor is it a loan involving a home for which a use and occupancy permit has been issued prior to the issuance of a Loan Estimate. 12 CFR § 1026.19(e)(3)(iv)(F), Comment 19(e)(3)(iv)(F)-1. In transactions involving new construction where the creditor reasonably expects that settlement will occur more than 60 days after the original Loan Estimate is provided, the creditor may provide revised disclosures at any time prior to 60 days before consummation if the creditor states that possibility clearly and conspicuously on the original Loan Estimate. The statement, “You may receive a revised Loan Estimate at any time prior to 60 days before consummation” under the master heading “Additional Information About This Loan” and the heading “Other Considerations” pursuant to § 1026.37(m)(8) satisfies these statement requirements. Comment 37(m)(8)-1. If no such statement is provided, the creditor may not issue revised disclosures, except as otherwise provided in § 1026.19(e)(3)(iv). More information on good faith tolerances, § 1026.17(c)(6) and Appendix D for Construction Loans is available in Section 7 and Section 14 of the TILA-RESPA Rule Small Entity Compliance Guide . Updated May 31, 2019
The Total of Payments disclosure is the total, expressed as a dollar amount, of:
that the consumer will have paid after making all payments related to the mortgage. The disclosure is the sum of the amounts paid through the end of the loan term and assumes that the consumer makes payments as scheduled and on time. 12 CFR § 1026.38(o)(1); Comments 38(o)(1)-1 and 37(l)(1)(i)-1. The Total of Payments does not include payments of principal, interest, mortgage insurance, or loan costs that the seller or other party, such as the creditor, may agree to offset (in whole or in part) through a specific credit, for example through a specific seller or lender credit, because these amounts are not paid by the consumer. General credits (i.e., generalized payments from the creditor, seller, or other party to the consumer that do not pay for a particular fee) do not offset amounts for purposes of the Total of Payments calculation. Comment 38(o)(1)-1. In calculating the Total of Payments: Payments of principal are the total the consumer will pay towards principal on the loan through the end of the loan term. Comment 38(o)(1)-1. Payments of interest are the total the consumer will pay towards interest on the loan through the end of the loan term and includes prepaid interest. For Adjustable Rate Mortgages, as defined in § 1026.37(a)(10)(i)(A), interest is calculated using the guidance provided in Comment 17(c)(1)-10. Comment 38(o)(1)-1; Comment 37(l)(1)(i)-1. Payments of mortgage insurance are the total the consumer will pay towards mortgage insurance or any functional equivalent and includes amounts for prepaid or escrowed mortgage insurance. Comment 38(o)(1)-1; Comment 37(l)(1)(i)-1. This includes premiums or other charges for any guarantee providing coverage similar to mortgage insurance (such as a Department of Veterans Affairs or Department of Agriculture guarantee) even if not considered insurance under state or other applicable law. Comment 37(c)(1)(i)(C)-1. Payments of loan costs are the total the consumer will pay towards the costs disclosed in the Loan Costs Table and designated as “Borrower-Paid” on the Closing Disclosure under § 1026.38(f). 12 CFR § 1026.38(f); Comments 38(o)(1)-1 and 37(l)(1)(i)-1. More information on disclosing the Total of Payments is available in Section 3.6.1 of the TILA-RESPA Rule Guide to Forms . Updated June 9, 2020 Yes. Regulation Z, 12 CFR § 1026.38(o)(1) requires a creditor to calculate and disclose the total of payments expressed as a dollar amount. This disclosure is total the consumer will have paid after making all scheduled payments of principal, interest, mortgage insurance, and loan costs through the end of the loan term. For purposes of this calculation, interest is the total the consumer will pay towards interest on the loan and includes prepaid interest, sometimes referred to as “odd-days” or “per diem” interest. Prepaid interest under § 1026.38(g)(2) is typically disclosed as a positive number when interest is due at consummation for the period of time before interest begins to accrue for the first scheduled periodic payment. Comments 38(g)(2)-1 and 37(g)(2)-1. Typically, mortgage interest is paid one month in arrears meaning that, for example, if the first scheduled periodic payment due is on November 1st, it will cover interest accrued in the preceding month of October. In that example, if the consumer consummates the mortgage loan on September 20th, interest starts to accrue on September 20th and at consummation the consumer will typically prepay interest for the 11-day period through the end of September, and that amount must be disclosed under § 1026.38(g)(2) as a positive number. In some cases, a loan may have a negative amount for prepaid interest disclosed under § 1026.38(g)(2), sometimes referred to as a prepaid interest credit. Negative prepaid interest can result if consummation occurs after interest begins accruing for periodic payments. In the example above, if the consumer instead consummates the mortgage loan on October 4th but the first scheduled periodic payment is due on November 1st and will cover interest accrued in the preceding month of October, then at consummation the creditor will typically credit the consumer for the preceding 3 days in October to offset some of that first scheduled periodic payment. That amount must be disclosed under § 1026.38(g)(2) as a negative number. When calculating the Total of Payments, if the loan includes negative prepaid interest, it is accounted for as a negative number. Comment 38(g)(2)-2. Using a negative number will offset the interest the consumer will have paid and therefore reduces the amount disclosed as the Total of Payments. More information on disclosing the Total of Payments is available in Total of Payments Question 1, above, and Section 3.6.1 of the TILA-RESPA Rule Guide to Forms . Updated June 9, 2020
It depends. While the TRID Rule does not require consumers to sign the Loan Estimate or Closing Disclosure, it provides creditors the option to include a line for consumer signatures to acknowledge receipt. 12 CFR §§ 1026.37(n), 38(s). A creditor may include the signature line and require the consumer to sign the disclosure, but only if the consumer receives the disclosure in a form that they may keep. 12 CFR §§ 1026.37(o)(1)(i), 38(t)(1)(i). The consumer must have the ability to retain a copy of the disclosure after returning the signed disclosure to the creditor. For example, a creditor may require a consumer to return a signed copy of the Closing Disclosure; however, the creditor must ensure that the consumer receives at least one copy of the Closing Disclosure, in a form that the consumer may retain, no later than three business days before consummation. 12 CFR §§ 1026.38(s)(1), 19(f)(1)(ii)(A), and 38(t)(1)(i). If the consumer receives only one copy of the Closing Disclosure and the creditor requires the consumer to sign and return that copy, then the consumer has not received the Closing Disclosure in a form that the consumer may keep and the requirements of §1026.38(t)(1)(i) have not been met. Updated June 9, 2020
Generally, yes. A loan is covered by the TRID Rule if it meets the following coverage requirements:
The TRID Rule combined the preexisting Good Faith Estimate (GFE) and initial Truth-in-Lending disclosure (initial TIL) forms into the Loan Estimate. 12 CFR § 1026.19(e). Similarly, the TRID Rule combined the preexisting settlement statement (HUD-1) and final Truth-in-Lending disclosure (final TIL) into the Closing Disclosure. 12 CFR § 1026.19(f). The TRID Rule also changed some post-consummation disclosures: the Escrow Cancellation Notice (Escrow Closing Notice) and Mortgage Servicing Transfer Notice Partial Payment Policy Disclosure (Partial Payment Policy Disclosure). 12 CFR § 1026.20(e), 1026.39(a) and (d). Generally, creditors of housing assistance loans, if covered by the TRID Rule, must provide these disclosures. However, even if covered by the TRID Rule, housing assistance loan creditors may opt to meet the criteria for one of two partial exemptions from the requirement to provide the Loan Estimate and Closing Disclosure. Those partial exemptions are either 1) the regulatory partial exemption in Regulation Z, 12 CFR § 1026.3(h) (Regulation Z Partial Exemption), or 2) the statutory partial exemption in the TILA and RESPA statutes, provided through amendments made by the Building Up Independent Lives and Dreams Act (BUILD Act) (BUILD Act Partial Exemption). See Pub. Law No. 116-342. Depending on which partial exemption is met, the creditor may also be exempt from certain other disclosures. For more information about general coverage requirements of the TRID Rule, see Section 4 of the TILA-RESPA Rule Small Entity Compliance Guide . For more information on the scope of the partial exemptions, see TRID Housing Assistance Loans Question 2, below. For more information on the criteria for the partial exemptions under Regulation Z and the BUILD Act, see TRID Housing Assistance Loans Questions 3 and 4 below. Updated May 14, 2021 To qualify for the Regulation Z Partial Exemption, a transaction must meet all of the following criteria:
12 CFR 1026.3(h); Comments 3(h)-1 through -5. For more information about the Regulation Z Partial Exemption, see Section 4.5 of the TILA-RESPA Rule Small Entity Compliance Guide . For more information on the disclosures required under this partial exemption, see TRID Housing Assistance Loans Question 4. See also, discussion of the BUILD Act Partial Exemption, discussed in TRID Housing Assistance Loan Question 3, below. Updated May 14, 2021 To meet the criteria for the partial exemption from the Loan Estimate and Closing Disclosure requirements under the BUILD Act, the transaction must meet all of the following criteria:
15 U.S.C. § 1604(e); 12 U.S.C. § 2603(d). For discussion of which disclosures are required, see TRID Housing Assistance Loans Question 4. See also, discussion of the Regulation Z Partial Exemption, discussed in TRID Housing Assistance Loan Question 2, above. Updated May 14, 2021 Generally, if a housing assistance loan creditor opts for one of the partial exemptions, under either Regulation Z, 12 CFR § 1026.3(h), or the BUILD Act, they are exempted from the requirement to provide the Loan Estimate and Closing Disclosure for that transaction. However, those partial exemptions do not affect other required disclosures, such as the Escrow Closing Notice. The partial exemption in Regulation Z exempts transactions from the requirement to provide the Loan Estimate and Closing Disclosure if creditors opt to provide the TIL disclosures and meet the five other criteria for the partial exemption (see TRID Housing Assistance Loans Question 2, above). Creditors are not required, as part of the criteria for the Regulation Z Partial Exemption, to provide the GFE or HUD-1. Transactions meeting the six criteria are also exempt from the requirement to provide the Special Information Booklet. 12 CFR § 1026.3(h)(6). The partial exemption in the BUILD Act, which took effect on January 13, 2021, also exempts transactions from the requirement to provide the Loan Estimate and Closing Disclosure if creditors opt to meet certain criteria, which are similar but distinct from Regulation Z Partial Exemption criteria. The BUILD Act does so by amending the underlying statutes for the TRID Rule (i.e., TILA and RESPA). If the housing assistance loan meets the criteria established in the BUILD Act, creditors of qualifying loans have the option of using the HUD-1, GFE, and TIL disclosures, collectively, in lieu of the Loan Estimate and Closing Disclosure. The BUILD Act does not exempt loans from the requirement to provide the Special Information Booklet. 15 U.S.C. § 1604; 12 U.S.C. § 2603; 12 CFR § 1026.19(g). For more information on the criteria for the partial exemptions under Regulation Z and the BUILD Act, see TRID Housing Assistance Loans Questions 2 and 3 above. Updated May 14, 2021 Yes. The BUILD Act allows a housing assistance loan creditor to provide the Loan Estimate and Closing Disclosure even if a loan qualifies for the exemption under the BUILD Act. 15 U.S.C. § 1604; 12 U.S.C. § 2603. Regardless of which set of disclosures the creditor chooses to provide—the Loan Estimate and Closing Disclosure or, alternatively, the GFE, HUD-1, and TIL disclosures—the creditor must comply with all applicable disclosure requirements pertaining to those disclosures. For more information on the criteria for the BUILD Act Partial Exemption, see TRID Housing Assistance Loans Question 3, above. For discussion of which disclosures are required, see TRID Housing Assistance Loans Question 4. Updated May 14, 2021 |
Who is generally required to ensure that the consumer receives the closing disclosure no later than three business days before consummation of the loan?
Postagens relacionadas
direito autoral © 2024 comojogaruno Inc.
