Construction loans are not exempt from needing the APR to accurate correct? Loan Estimate shows 12.459% and our Closing Disclosure shows 13.128%. Do we need a new 3 day waiting period?

There is no comparison of an APR on an LE to a CD. Once you issue the initial CD, if the APR changes by more than the tolerance at closing then a three day wait kicks in.

rlcarey, So, we only need to concern ourselves with the APR is something were to change between issuing the CD and the actual closing of the loan. I wonder why I thought it was a comparison of the APR from LE/GFE to CD/HUD.

You already have a three day waiting period between receipt of the CD and consummation. If the APR changes beyond the applicable tolerance between receipt of the initial CD and closing it essentially resets that three day window.

You may be suffering from a pre-TRID MDIA disclosure hangover. Under the old rule, if an early TIL was required (consumer loan subject to both TILA and RESPA), and the APR on the early TIL became inaccurate, you had to provide a new TIL and a waiting period to consummation. (see current 1026.19(a)(2)(ii), which applies to early TILs issued for reverse mortgage loans and, for applications received before 10/3/2015, to early TILs for loans subject to RESPA (old rules).

But under the current (TRID) rules, the APR on the Loan Estimate is not subject to that requirement for reissuance and wait. The Closing Disclosure APR is.

!!! Gotta love it!

"Pre-TRID MDIA disclosure hangover...." LOL


I wish I read this earlier...I JUST had a conversation with a processor about this...