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#2054018 - 12/14/15 05:35 PM 90 day extension under TRID
TaraTLR Offline
100 Club
Joined: May 2013
Posts: 136
I know that under RESPA, if we were doing a 90 day extension on a real estate secured loan and we are not doing a new note that RESPA does not apply to the loan. With the new TRID rules, is that still applicable. We will be charging an extension fee and in the past we would just show it on a HUD 1A. Would we still use the HUD 1A and TIL in this situation? The original loan is Pre- TRID. Please let me know your thoughts. Thank you.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2054052 - 12/14/15 07:19 PM Re: 90 day extension under TRID TaraTLR
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,625
Galveston, TX
Either you have a refinance under 1026.20 or you do not. If you do, the refinance is subject to all Regulation Z rules. That has not changed with TRID.
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#2054106 - 12/14/15 10:12 PM Re: 90 day extension under TRID TaraTLR
TaraTLR Offline
100 Club
Joined: May 2013
Posts: 136
This loan is just an extension, not a refinance. Not sure if anything had changed with this moving into the TRID rules. Thank you for your help. Since it is exempt can we use the TIL and the HUD 1A to disclose the fees for the extension?

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#2054291 - 12/15/15 07:50 PM Re: 90 day extension under TRID TaraTLR
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,625
Galveston, TX
Why would you use such forms for a transaction that is not subject to either TILA or RESPA??? What are you going to put on the TIL???
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#2054508 - 12/16/15 07:34 PM Re: 90 day extension under TRID TaraTLR
NorthSouth Offline
Junior Member
Joined: Jun 2015
Posts: 26
Just got an email asking about a very similiar scenario, extend the maturity date of a pre-TRID loan. In the past I believe we would have issued a new TIL, based on the current balance and interest rate, which reflects the fees being charged for the extension - at least one of which is a prepaid finance charge.

The extension is being done prior to the loan's maturity date. I realize there are discussions about pre- vs. post-maturity activity....in this case though, is anything required other than a Change in Terms? TRID confuses this situation even more, at least for me.
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#2054549 - 12/16/15 09:04 PM Re: 90 day extension under TRID TaraTLR
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,684
Cape Cod
Go back to section 1026.20 and figure out whether what you are doing is a refinancing. If it isn't, you don't need new disclosures. Just a modification agreement.
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#2054553 - 12/16/15 09:17 PM Re: 90 day extension under TRID TaraTLR
NorthSouth Offline
Junior Member
Joined: Jun 2015
Posts: 26
Thank you John!!
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We often take for granted the very things that most deserve our gratitude.

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