The Bureau’s 2017 revision of the Regulation Z TRID rules resolved a lot of problems that lenders were having providing Loan Estimates and Closing Disclosures that conformed to the rules. The changes were effective on October 10, 2017, but compliance isn’t mandatory until October 1, 2018. Have the changes been made in your institution’s loan origination software and procedures?
The updates are as beneficial to lenders as they are to consumers. They clear up major questions about disclosing construction loans, provide more flexibility in the Cash to Close table, and address a lot of other challenges lenders experienced under the old requirements.
The Bureau has also made changes effective June 1, 2018, that affect the use of revised Loan Estimates, or a Closing Disclosure (initial or revised) to disclose certain closing costs changes occurring at or around the time for Closing Disclosures.
In this webinar, John will focus on completion of the Loan Estimate. He’ll review the basics on timing requirements and other unchanged parts of the Loan Estimate rules, and focus on changes that clarify rules on providing revised or updated loan estimates, and the Bureau’s blessing on “informational loan estimates.”
The Bureau's considerable updates to Appendix D and the disclosure of construction loans and their impact on the Loan Estimate will also be discussed. You'll hear about:
- The addition of coverage for cooperative units
- When to include an expiration date and time in the Rate Lock disclosure at the top of page 1 of the Loan estimate, and when to omit it.
- Proper completion of the estimated property value
- Disclosing the loan term for a construction loan
- Clarifying the Loan Purpose disclosure
- Which rate and payment amount to disclose for an ARM
- Completion of the Estimated Taxes, Insurance & Assessments escrow response
- Simultaneous subordinate financing
- Disclosing construction loan inspection and handling fees
- Changes in the math instructions for the Calculating Cash to Close table
- Disclosing seller credits
- The risks in disclosing lender credits
- Calculating the TIP
- The new, more sensible, rules on rounding and decimal places
- Revised comment App D-7