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#2157172 - 12/13/17 03:36 PM TRID - Liability After Foreclosure section of CD
Compliance Nut Offline
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For a Florida Bank, in the Liability After Foreclosure section of page 5 of the CD where we need to make a selection, do we have to check the box indicating “state law may protect.....” or should we check “does not”.

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#2157183 - 12/13/17 04:08 PM Re: TRID - Liability After Foreclosure section of CD [Re: Compliance Nut]
rlcarey Offline
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#2157188 - 12/13/17 04:14 PM Re: TRID - Liability After Foreclosure section of CD [Re: rlcarey]
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Ok, so because I am not an attorney, what does this mean? And, would you check this if it were either a purchase or a refinance?

State law may protect you from liability for the unpaid balance. If you
refinance or take on any additional debt on this property, you may
lose this protection and have to pay any debt remaining even after
foreclosure. You may want to consult a lawyer for more information.

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#2157197 - 12/13/17 04:53 PM Re: TRID - Liability After Foreclosure section of CD [Re: Compliance Nut]
rlcarey Offline
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Loc: Galveston, TX
37(m)(7) Liability after foreclosure.

1. When statement is not permitted to be disclosed. The disclosure described by § 1026.37(m)(7) is required under the condition specified by § 1026.37(m)(7), specifically, if the purpose of the credit transaction is a refinance under § 1026.37(a)(9)(ii). Under any other conditions, this statement is not permitted to appear in the Loan Estimate.

It only appears on refinance transactions. Many States will only protect a borrower on a purchase transaction, but those protections disappear if you refinance the property. However, the protections do not seem to disappear in Florida on primary residences - but it is warning the consumer to check.
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#2157217 - 12/13/17 09:39 PM Re: TRID - Liability After Foreclosure section of CD [Re: Compliance Nut]
Compliance Nut Offline
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Registered: 02/03/16
Posts: 69
Ok - so in FL, if it's a refinance, then we would check "may protect". If it's a purchase, that section shouldn't be on the LE at all (or if it is on there, don't check either)?

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#2157224 - 12/14/17 07:39 AM Re: TRID - Liability After Foreclosure section of CD [Re: Compliance Nut]
rlcarey Offline
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Loc: Galveston, TX
It should not appear.
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#2157226 - 12/14/17 08:43 AM Re: TRID - Liability After Foreclosure section of CD [Re: Compliance Nut]
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Registered: 02/03/16
Posts: 69
Thanks for the help....just curious - have you verified this with an attorney in FL?

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#2157238 - 12/14/17 09:38 AM Re: TRID - Liability After Foreclosure section of CD [Re: Compliance Nut]
rlcarey Offline
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Registered: 07/16/01
Posts: 66870
Loc: Galveston, TX
I need to leave that up to you.
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