Clarification of Construction Loan Rules

Answered by:

Question:

Has guidance on construction loan financing been expanded?

Answer:

The old GFE/HUD-1 rules did not apply to temporary financing, such as construction loans. The TRID rules expanded coverage to include construction loans, but did not expand the rules for the Loan Estimate and the Closing Disclosure to adequately explain how the forms were to be completed for construction loans. The recent revisions significantly expand the guidance.

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2017 TRID Amendments