Latest Lending - Closing Disclosures Topics

Real Estate Property Taxes on Closing Disclosure

01/12/2020

I have a refinance loan closing and I have to pay the real estate property taxes that were due on 7/1- summer taxes. Where should I put them on the Closing Disclosure, In section F-prepaid or is it okay to put them in the payments and payoff section (page 3) on the CD?

Lender Credit Due to Charge for Transfer Taxes

01/05/2020

A residential mortgage disclosed a lender credit for $200 due to a charge for transfer taxes. At closing the $200 charge was no longer applicable as mom and dad remained on the title. As a result, the title company took away the $200 fee that they had disclosed on their estimated statement and said the charge wasn’t applicable any more. Is the Bank is still responsible for issuing the lender credit of $200, although the corresponding charge has gone away?

Delivery of a Closing Disclosure by Email

12/01/2019

In search for further guidance on compliance for delivery of a Closing Disclosure (CD) by way of email (with a borrower's E-Sign consent) we have varying differences in the interpretation of the word "Receipt". It has been our department's practice to deliver the CD within no less than 3-business days prior to closing. Documentation to evidence delivery has been by including a printed copy of 1) email showing our department's delivery of the CD to the borrower by way of email, and/or 2) a printout showing the "Arrival Date" of the email/attachments to the borrower. Some have interpreted the "Receipt" rule as evidence the email and attachment(s) was "OPENED". Are we in violation if a loan is scheduled to close on a Monday and the borrower did not “OPEN” the email until the 2nd business day (Thursday) prior to closing – even though we have evidence to show “ARRIVAL” of our CD on or before the 3rd business day prior to closing?

Change to Loan One Day Before Initial Closing

12/01/2019

If you have changes to a loan product or loan amount, etc. one day prior to the initial closing disclosure being issued, can you use the initial CD to disclose the changes or do you have to reissue the loan estimate and restart the clock, or is there another solution?

Modification Fees on Construction-perm Loans

11/24/2019

I have a question regarding modification fees on our construction-perm loans. If additional fees are incurred at modification (Appraisal fee, recording fees, title fees, etc.) and were not disclosed on the loan estimate or closing disclosure, are we able to collect and charge them or would this be a TRID tolerance issue?

Disclosing Payoff Amount on Closing Disclosure

09/22/2019

When disclosing the payoff of an existing lien on the collateral property, should the amount listed on page 3 of the Closing Disclosure just show the principal balance, or should it show the principal balance, plus the interest due? I do not believe the reg goes into detail on what the amounts listed should be. My thought is we would need to list the amount that would fully pay off that existing lien (principal, interest, late charges, etc. ). There have been discussions about not capitalizing off interest, but as long as we are not financing the interest due into the new loan amount, I do not see how we would be capitalizing off previous interest. In addition, if we list the full payoff amount, would we need to list just one payoff amount, or would we need to list separate lines for principal, interest and late charges on the Closing Disclosure? I believe either way would be okay, but my thoughts are we would just need to list one line item with the full amount.

Attorney Fee for Preparing Purchase Contract

09/01/2019

If the buyer is being charged by the attorney to prepare the purchase contract, would we reflect that in Section C or Section H? Also, would the fee description have "Title" in front of it?

Lender Offering Gift Card at Closing for Mortgage

06/30/2019

May a lender offer a gift card at closing for a mortgage loan, and would this then be disclosed on a loan estimate or closing disclosure?

Tolerance/Cure Amount for LE/Closing Disclosure

06/16/2019

I'm new to TRID and trying to understand tolerance and cure amounts for things such as the following: Loan Estimate : - Recording Fees $32.00 - Settlement Agent Fee $500 and - Title Search $300.00 Closing Disclosure: Title Search $500.00 What would be the tolerance cure?

Excess Funds-Lender Credit on Refinance

06/09/2019

If we give a lender credit on a refinance transaction and the credit exceeds the cost on the refinance, where do the excess funds (credit) go? Can the lender just reduce the credit, or does it have to be applied to a principal reduction?

Premium Content View All

COMPLIANCE Q&A: Loan Estimates, Closing Disclosures & TRID

Question: We have our examiners on site reviewing our Loan Estimates and Closing Disclosures under TRID.

COMPLIANCE Q&A: Attorney client privilege & correct closing disclosure

Question: The Bank is doing a consumer construction loan and the closing attorney (selected by the borrower) refuses to disclose certain closing fees.

Military Status and Foreclosure

01/26/2020

If our borrower hasn’t requested SCRA protection and is past due on her mortgage, can we start foreclosure as we normally would?

"Purpose" for a home improvement loan

01/26/2020

For a home improvement loan, is the Purpose = Home Equity?

CC Dispute- Purchase for Cancelled Trip

01/26/2020

We received a complaint from an account holder who used their credit card to purchase a trip on 7/3/18 for over $2,600 from a travel company. He provided evidence to us on 8/11/18 that the travel company had closed and the trip would not be offered and there would be no refund for what he had paid. The information he was provided from the travel company said the purchase was non-refundable and he had not purchased trip cancellation protection. He filed a dispute with us on 8/11/18 asking for credit for the cost of the trip. He did not make any payments on the account between 7/3/18 and 8/11/18, so it seems to me he would have a valid claim under both Reg. Z 1026.12 and 1026.13 (since he didn't/isn't going to receive the services he paid for and he filed his dispute within 60 days of the date of the statement the charge appeared on and he had not paid for the charge before he filed his dispute. Our bank's disputes department declined his claim, so he filed subsequent disputes, but was told each time that he was not entitled to a credit. I work in Complaints, which is where this claim has now landed, and I believe we need to credit him for the purchase. Is my thinking correct?

Collection Method Questions for HMDA

01/26/2020

This question has come up before but I have not seen a clear answer. If the application is NOT taken face to face, how should the collection method questions be answered for HMDA? Code 3 (NA) is only supposed to be for applications where the requirement to report the data does not apply to the covered loan. We would use code 3 on applications where it is an entity. Code 2 (not based on visual observation) would be the only choice that would make sense. What are your thoughts?

Is email receipt of the LE sufficient

01/19/2020

We mailed the borrower’s Loan Estimate and they emailed us that it was received, and they want to proceed with the loan. Can we act on this emailed notice?

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