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#2141593 - 08/10/17 02:30 PM HUD1 and GFE post-TRID
Compliance Rookie Offline
New Poster

Registered: 08/10/17
Posts: 24
Loc: North Carolina
Hi gang, I have a question and I need your help!

I know this may be a silly question, but I just started in compliance last month (Very Excited! grin)

My question is:

What loans or types of loans do the HUD-1 and GFE still apply to? I understand that TRID/TILA (Reg Z) covers most scenarios, but I can't seem to determine what is still covered solely by RESPA.
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"If you aren't fired with enthusiasm, then you will be fired with enthusiasm" -- Vince Lombardi

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#2141604 - 08/10/17 03:06 PM Re: HUD1 and GFE post-TRID [Re: Compliance Rookie]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 65058
Loc: Galveston, TX
Loans to an organization for consumer purposes
Loans secured by Co-ops
Reverse mortgages
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2141605 - 08/10/17 03:11 PM Re: HUD1 and GFE post-TRID [Re: Compliance Rookie]
John Burnett Offline

10K Club

Registered: 10/27/00
Posts: 36546
Loc: Cape Cod
Reverse mortgages still play by the old rules -- they are subject to RESPA and you have to use a GFE and HUD-1 and because they are also subject to Reg Z, you have to provide disclosures under the old rules.

Technically (and I know this statement will draw arguments to the contrary), a loan that is to an entity but for a consumer purpose can be subject to RESPA and not to TILA. An example could be a loan to an LLC with the loan purpose of purchasing a residence for the owners of the LLC. Assuming that the law allows the LLC to engage in such a transaction, it would be exempt from Reg Z even if the individuals guarantee the loan, because the borrower is an entity. Since the exemption in Regulation X for business-purpose transactions is based on loan purpose and not on who or what the borrower is, the loan would still be subject to RESPA.
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John S. Burnett
BankersOnline.com
Professional Compliance Nerd since 1976
Bankers' Threads User #8

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#2141759 - 08/11/17 02:45 PM Re: HUD1 and GFE post-TRID [Re: Compliance Rookie]
David Dickinson Offline
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Registered: 11/28/00
Posts: 17320
Loc: Central City, NE
John: FWIW, I agree with you 100%.

The real world problem is finding a system to kick out RESPA disclosures for these rare loans.
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David Dickinson
http://www.bankerscompliance.com

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#2141762 - 08/11/17 02:49 PM Re: HUD1 and GFE post-TRID [Re: Compliance Rookie]
John Burnett Offline

10K Club

Registered: 10/27/00
Posts: 36546
Loc: Cape Cod
Start by finding a typewriter.
>>>>A what?
A typewriter?
>>>>What's a typewriter?
Never mind.
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John S. Burnett
BankersOnline.com
Professional Compliance Nerd since 1976
Bankers' Threads User #8

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#2141766 - 08/11/17 02:55 PM Re: HUD1 and GFE post-TRID [Re: Compliance Rookie]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 65058
Loc: Galveston, TX
We do smile Oh, and applications secured by co-ops until 10/01/2018, when those then fall under TRID.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2141774 - 08/11/17 03:05 PM Re: HUD1 and GFE post-TRID [Re: Compliance Rookie]
John Burnett Offline

10K Club

Registered: 10/27/00
Posts: 36546
Loc: Cape Cod
Unless in your state a coop is considered real estate. Pulling them in under the TRID rules nationwide was one of the smarter moves in the amendments. And I believe you will be able to treat them as TRID-worthy starting 10/10/17 if you want to get started.
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John S. Burnett
BankersOnline.com
Professional Compliance Nerd since 1976
Bankers' Threads User #8

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#2141781 - 08/11/17 03:34 PM Re: HUD1 and GFE post-TRID [Re: Compliance Rookie]
Compliance Rookie Offline
New Poster

Registered: 08/10/17
Posts: 24
Loc: North Carolina
Thank you gentlemen for your clear and succinct responses! Your expertise is appreciated!
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"If you aren't fired with enthusiasm, then you will be fired with enthusiasm" -- Vince Lombardi

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#2142616 - 08/18/17 11:19 AM Re: HUD1 and GFE post-TRID [Re: Compliance Rookie]
John Burnett Offline

10K Club

Registered: 10/27/00
Posts: 36546
Loc: Cape Cod
Welcome to BOL's Discussion Forums, Rookie. And congratulations on your new compliance assignment. We wish you a fast learning curve, perseverance, the ability to figure out where things are (and a long memory to go with it), and, above all, management support of your efforts.
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John S. Burnett
BankersOnline.com
Professional Compliance Nerd since 1976
Bankers' Threads User #8

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