Hello,

We are trying to do a TRID loan which has two purposes in ComplianceOne Mortgage and wanted to know if any other users have had luck with this. Here's the setup: We are refinancing a secondary residence by paying off two other banks. The borrowers are also wanting to purchase the lot beside their secondary residence and include this in on the same loan. The amount of the refinance well exceeds the purchase price of the lot. Help?

Thank you,

jill

What is your collateral? If the lot is collateral on the loan, this transaction should have the purpose of purchase on the Loan Estimate and Closing Disclosure. If only the secondary residence is collateral, it should be reported as a refinance (if the loans being paid off are also secured by the secondary residence). The amount of money going towards purchase or refinance is not a factor in how you report the purpose of the loan.

I can't help you with ComplianceOne though, sorry!

I agree with #12. You can only have one purpose on the TRID Disclosures. The purchase will trump the refinance IF the lot being purchased is also securing the loan. If the lot is not securing the loan, then you have a refinance for TRID purposes (if paying off loans secured by the residence). We have a similar transaction that we are working on, but with a mobile home and land. We have Compliance One but we are switching to a different vendor soon.

The lot (purchase) and the residence (refinance) will both be collateral on the loan. So I understand, the purpose of the loan should be the purchase of the lot?

Yes, it will be a purchase. I don't use Compliance One but I know our system cannot handle it when the sales price is less than the loan amount. We have to manually override some calculations in the system to get the cash to close correct. You probably need to talk to Compliance One to see what their work around is for this issue.

Compliance One should be able to handle it with their new setup for the section related to payoffs and payments to third parties, not included in closing costs...and the other box (can't think of the 'title') You may have to play with those two boxes to get it to come out like you want it...but it should be able to handle it.

Good luck! We have C1 and we do loans like that all the time. Our attorneys hate the way the CD turns out. It never turns out the way we want it to.. RR Joker is right, their new setup should help you out though, but good luck trying to understand the instructions C1 gave you in the release notes. All this is a big ole mess still!

I just play with it. I know on a sale, you put the SP in both boxes. If there is additional money...I'm thinking you put that in one of them plus the SP...just play with it...my CloDs [so far] come out making sense with a bottom line that is correct.