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#2226940 - 12/06/19 05:59 PM Borrower includes an LLC - subject to TRID?
Tarhe Offline
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Joined: Nov 2006
Posts: 1,243
California
Co-Borrowers are an LLC, an individual and the individual's family trust.
Purpose is to build the primary residence for the individual.

It seems to meet the requirements for a "covered loan" (consumer purpose, closed-end, secured by real property) but having the LLC as a co-borrower is throwing me (as loans to an entity would be excluded.)

Would this be subject to TRID?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2226943 - 12/06/19 06:22 PM Re: Borrower includes an LLC - subject to TRID? Tarhe
rlcarey Online
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rlcarey
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Galveston, TX
Sounds like a nightmare of a loan. Who is going to hold title?
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#2226954 - 12/06/19 07:55 PM Re: Borrower includes an LLC - subject to TRID? Tarhe
Tarhe Offline
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California
The LLC will hold title.

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#2226955 - 12/06/19 07:57 PM Re: Borrower includes an LLC - subject to TRID? Tarhe
rlcarey Online
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rlcarey
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Galveston, TX
I would at least comply with RESPA with a GFE and HUD-1 then. Surprised that a trust would allow becoming liable on this sort of transaction
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#2226956 - 12/06/19 07:58 PM Re: Borrower includes an LLC - subject to TRID? Tarhe
Tarhe Offline
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Posts: 1,243
California
Thank you!

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#2227057 - 12/09/19 11:07 PM Re: Borrower includes an LLC - subject to TRID? rlcarey
crcmnot Offline
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Joined: Sep 2016
Posts: 344
Randy - excuse my ignorance...I have been immersed in TRID for so long that all I ever see are LE's & CD's. Would we only need to do a GFE & HUD-1 to an entity if the entity is the borrower but the loan appears to be for a consumer purpose? I don't think I have seen a GFE since late 2015 and want to make sure I haven't missed a reg somewhere!

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#2227058 - 12/09/19 11:15 PM Re: Borrower includes an LLC - subject to TRID? Tarhe
burke116 Offline
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Joined: Jun 2014
Posts: 542
RVA
Reg Z specifically exempts credit made to a business entity. TRID is housed in Reg Z.

Reg X does not have the same exemption; Reg X only has an exemption for business purpose. Reg X still has the GFE/HUD settlement statement requirements.

So, if you have a LLC that applies for a federally related mortgage loan- it won't be subject to Reg Z/TRID, but will be subject to Reg X and the old disclosures.

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#2227108 - 12/10/19 06:55 PM Re: Borrower includes an LLC - subject to TRID? Tarhe
John Burnett Offline
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John Burnett
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Cape Cod
You have the option to provide the TRID disclosures even when the loan might be exempt from Reg Z.
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