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#2197506 - 11/06/18 04:25 PM TRID and Prior Transactions
Luv2run Offline
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Registered: 01/29/15
Posts: 334
I know I saw this somewhere but cannot find it.....maybe it was in a webinar? I know I read somewhere that a lender does not have to rely on any information from a prior transaction when disclosing in good faith on the LE. The reason for this inquiry is that we failed to disclose a fee for a manufactured home because when asked, the borrower stated it was NOT a MH. We ate the fee because the processors felt we had to since we should have known this from the prior transaction. I want to address this, but would love to find a reference.......
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TRID - TILA/RESPA Integrated Disclosures Rule
#2197533 - 11/07/18 07:46 AM Re: TRID and Prior Transactions [Re: Luv2run]
BeechFlyboy Offline
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The only reference I saw sort of to this point was in a webinar where it was stated that just because you had one of the six pieces of information that make a TRID completed application from a prior transaction does not mean you have a completed application for the current transaction. In other words, just because you had their income from a prior loan application doesn't mean you have it for the current app.

With regard to knowing that the property is a MH and there would be a fee, if you knew that from a prior transaction, I think you'd be hard pressed to say learning of the fee was a change in circumstance. I tend to agree with the processors and say you reasonably should have known this at the time of initial disclosure.
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#2197535 - 11/07/18 08:16 AM Re: TRID and Prior Transactions [Re: Luv2run]
rlcarey Offline
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Registered: 07/16/01
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Loc: Galveston, TX
Originally Posted By Luv2run
The reason for this inquiry is that we failed to disclose a fee for a manufactured home because when asked, the borrower stated it was NOT a MH.


If they actually made this statement during the application process, then I don't think you have any obligation to review any previous transactions to determine that this was a false statement by the borrower.

There is also this statement in the preamble to TRID 1.0: " The definition of application refers to the “submission” of the six items of information that make up the definition, and as such, merely maintaining such information from a previous transaction or business relationship would not constitute an application for purposes of the definition if the consumer has not submitted any information or indicated that he or she wishes such information maintained by the creditor to be used for an application."
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#2197552 - 11/07/18 10:04 AM Re: TRID and Prior Transactions [Re: Luv2run]
Luv2run Offline
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Registered: 01/29/15
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Thank you both. I always appreciate feedback from this group! I cannot imagine that this situation would not be considered a change based on information provided at the time of application. In larger shops I can't see loan officers contacting operations to ensure all information provided on the new application is accurate. We are small, but the concept remains. Thank you rlcarey for the point of reference!
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#2197564 - 11/07/18 10:40 AM Re: TRID and Prior Transactions [Re: Luv2run]
John Burnett Offline

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In larger shops, the info is often available online.
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#2197565 - 11/07/18 10:43 AM Re: TRID and Prior Transactions [Re: Luv2run]
rlcarey Offline
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Available on-line or not - you are only required to act on the information that was "submitted" by the applicant.
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#2197684 - 11/07/18 03:42 PM Re: TRID and Prior Transactions [Re: Luv2run]
Katherine Offline
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Registered: 08/01/17
Posts: 36
We had a similar situation where the borrower submitted info that was erroneous, specifically they stated the property contained 1 unit but really there were 2 units (which affects the appraisal fee quote). I think the borrower may have "forgotten" because they were using the second unit (which was a cottage as storage). We did not treat it as a valid CIC because the protocol at the time of application is to print out the property tax info available on the county website (used to verify address and TMK). The property tax info which was in the file and printed at the time of application by the LO showed 2 units. Therefore, the information was available online AND based on our protocol, it was in the file at the time of application.

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#2197761 - 11/08/18 10:56 AM Re: TRID and Prior Transactions [Re: Luv2run]
Luv2run Offline
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Registered: 01/29/15
Posts: 334
I can see the reasoning there. I would have made the same call.
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