For a construction loan under RESPA, unless there is a takeout committment, we are considered the lender for the perm phase and therefore all disclosures must be given at application for both the const and perm phases.
We have done that. We give 2 sets of disclosures at application for a construction loan. 1 set for the const and 1 set for the perm phase. Within these disclosures, we also give the 60 day construction disclosure for redisclosure purposes.
Now, at what point, or what would trigger, redisclosure for the perm phase? We wouldn't need another application for the perm phase because that was technically given at construction phase, so at what point would we need to redisclose if fees have changed from the construction phase. We aren't sure if the client is going to stay here with the perm or not, but she may. If she doesn, then we need to redisclose, but what triggers that redisclosure?

The rights given to you by the 60-day letter. The trick is figuring out when you are at least 60 days (or more) from closing the permanent, and not within a 60 day window. That's the hard part!

I agree. What is your trick to figuring that out? Do you just go by the term of the const and go out maybe something like 70 days prior to end of that term and redisclose?

We have not had to re-disclose, but yes...we track it and coordinate closely with the construction lender.

Thanks RR Joker.

We have not had to re-disclose

Neither have we except when a changed circumstance has taken place and in those cases we are allowed to issue a revised GFE without consideration of the 60 day window.

Thanks Dan.

Very true...a bona fide COC would trump the need for the 60 days'. To me, the 60-days is for general fee changes that might occur over such a long span of time.