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#2247228 - 01/05/21 08:21 PM Two phase finance loan
ADN Offline
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Joined: Mar 2007
Posts: 221
If we accept an application for a temporary phase of a loan, do we also have to send TRID disclosures for the permanent phase loan at the same time if we are planning on financing it? We do this when we have a construction and perm loan, but we have other types of loans that are not for construction that are temporary and going to be followed by permanent financing and currently we are not creating a perm file and delivering disclosures.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2247232 - 01/05/21 08:49 PM Re: Two phase finance loan ADN
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
It all depends on when you receive the application for the permanent loan. This was clarified in TRID 2.0. See 1026.19(e)(1)(iii) Timing - Comment 5.
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#2247256 - 01/06/21 04:08 PM Re: Two phase finance loan rlcarey
ADN Offline
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Joined: Mar 2007
Posts: 221
After reading 1026.19(e)(1)(iii) comment 5, I interpret they are only talking construction and permanent financing you are required to deliver disclosures for both sets of loans. What about a bridge to purchase followed by perm financing?
Last edited by ADN; 01/06/21 04:10 PM.
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#2247272 - 01/06/21 05:39 PM Re: Two phase finance loan ADN
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
If you are talking about two separate loans, then the three business day requirement for the LE is triggered when you receive the application for that specific loan. If they apply for both at the same time - you have to get both. If they apply for the second permanent loan later - then that sets your application date for that LE.

The old HUD rule that said you had to give the second set if you were contemplating the end-loan and there was no take-out commitment is long gone.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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