All in Regulation Z

When is a Revised Loan Estimate Required

Adam Witmer
Regulation Z, TRID

As the Loan Estimate (LE) rules have been around for a few years now, there still seems to be some confusion about the good faith requirements in regards to tolerances and cures.  In my experience, much of this confusion is a result of financial institutions reissuing too many LEs and not fully understanding the revised Loan Estimate requirements. The reality is that many financial institutions provide far more revised Loan Estimates than are necessary.  This “overdisclosing” of the LE creates more work for mortgage processors and creates confusion for customers.

TRID Resetting Tolerances With a Closing Disclosure

Adam Witmer
Regulatory Update, Regulation Z, TRID

On April 26, 2018, the CFPB released a second set of TRID amendments which address when mortgage lenders with a valid reason may pass on increased closing costs to consumers and disclose them on a Closing Disclosure instead of a Loan Estimate. “Specifically, a timing restriction on when the creditor may use a Closing Disclosure to communicate closing cost increases to the consumer could prevent a creditor from charging the consumer for those cost increases despite a valid reason for doing so, such as a changed circumstance or borrower request. This article takes an in-depth look at the new rules and how they apply to community banks and credit unions.

Precise vs General Business Day Under Regulation Z

Adam Witmer
Regulation Z, TRID

While logic would tell us that a definition should be consistent from one regulation to another, reality tells us that this is anything but the truth.  When I teach compliance schools where we work through regulations from top to bottom, I always make an effort to point out the difference in the definition of “business day” as the definition varies - sometimes greatly - from one regulation to another.  In fact, Regulation Z actually has two different definitions for business day: the precise definition and the general definition.

TRID Product Type for Construction Loans

Adam Witmer
Regulation Z, TRID

Construction loans have proven to be anything but simple under TRID.  The CFPB gave very limited guidance for construction loans first came out and much of the guidance they have provided isn’t as clear as it should be.  For this reason, many financial institutions still seem to struggle with TRID disclosures for construction loans.  For example, disclosing the correct “Product” for a construction loans can

TRID Purpose on Construction Loans

Adam Witmer
TRID, Regulation Z

Construction loans under TRID have proven to be very challenging for many community banks and credit unions.  The reason for this is twofold: the CFPB did not provide much guidance in regards to construction loans and the guidance that they did provide is often found to be confusing.  For this reason, it is worth revisiting the TRID rules for construction loans every once in a while.  I recently received a question regarding the purpose field on the Loan Estimate (LE) as well as the Closing Disclosure (CD) for single-close, two phase construction loan where the land was