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#2114561 - 01/18/17 04:35 PM Properly Disclosing Construction Draw Fees
Cats Meow Offline
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Joined: Jan 2017
Posts: 11
I have seen a similar question to the disclosing of draw fees, but I didn't see a specific answer, so I will try my hand.

Title Company charges $60 per draw - average draws per construction loan are five. $300 is disclosed on the LE. Are others disclosing on the CD as follows?
a. In Section B or C and Paid Outside Closing (since title company doesn't collect until money is drawn), and
b. When the construction phase is over and only four draws were taken, for example, the uncollected $60 reduces the outstanding principal balance it is rolled into the permanent repayment phase.

I just need verification that this is correct scenario.

Thank you!

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TRID - TILA/RESPA Integrated Disclosures Rule
#2114817 - 01/19/17 10:31 PM Re: Properly Disclosing Construction Draw Fees Cats Meow
time flies when you're having fun Offline
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Hi CATS. I think the CFPB's TRID proposal suggests that these post consummation collected fees could be disclosed on an addendum rather than in the loan fees section of the LE/CD and therefore not included in the Calculating Cash to Close. See page 83 of that document -- comment 37(f)-3

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#2114828 - 01/20/17 01:01 AM Re: Properly Disclosing Construction Draw Fees Cats Meow
rlcarey Offline
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It ain't going to fly. I hope anyway.
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#2115234 - 01/24/17 01:33 AM Re: Properly Disclosing Construction Draw Fees time flies when you're having fun
Cats Meow Offline
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Joined: Jan 2017
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Thanks, I'll check that out.

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#2115280 - 01/24/17 03:15 PM Re: Properly Disclosing Construction Draw Fees Cats Meow
John Burnett Offline
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John Burnett
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Cape Cod
I'm in favor of restricting the disclosures on the CloD to the costs incurred and paid up to and including closing, to include any post-closing costs if collected from the consumer at or before closing. But costs that are billed post-closing (other than the estimated first-year escrow and other property costs amounts on page 4 (as required by § 1026.38(l)(7) should be treated as other post-closing costs have historically been treated -- not included on the CloD -- particularly those that can't be determined (because you don't know how may draws or inspections might be involved).
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