We are refinancing a loan that has an older home on the property inhabited by our borrower's father, who also has an ownership interest in the land. The age-old argument by the lender is the value is in the land--not the dwelling. The lender is not requiring hazard insurance on the home, but my question pertains to the insurance and assessments on page 1 of the LE. Does TRID require an estimate for the premium even though we're not requiring it in our underwriting? This is a home loan, not a land only loan, subject to flood and all things compliance. I welcome your feedback.

So, you are going to be using a customized security agreement that eliminates the hazard insurance requirement?

But to answer your question, if that is the case, the answer would be "no". 1026.37(c)(4)(ii) refers to 1026.43(b)(8), which states:

(8) Mortgage-related obligations mean property taxes; premiums and similar charges identified in § 1026.4(b)(5), (7), (8), and (10) that are required by the creditor; fees and special assessments imposed by a condominium, cooperative, or homeowners association; ground rent; and leasehold payments.

Good morning Randy--thanks for clarifying the insurance, and to answer your question, no we use a standard note and deed of trust.

So your standard deed of trust probably has language that states that hazard insurance is required. You may choose to not enforce that provision, but it is still a legal obligation of the borrower. Unless you strike that language from the deed of trust, I think you will need to include the hazard insurance premium on the LE and CD.

I concur. Your disclosures have to always reflect the legal obligation under 1026.17(c).

Thank you both!