All in TRID

CFPB Assessment of TRID

Adam Witmer
Regulatory Update, TRID

On 11/20/19, the CFPB announced a request for public comment on an assessment it will conduct on the TRID rules. 

As part of its assessment, the Bureau intends to address TRID’s effectiveness in meeting the purposes and objectives of the Dodd-Frank Act, the specific goals of the rule, and other relevant factors.  The public is invited to comment on the feasibility and effectiveness of the assessment plan, recommendations to improve the assessment plan, and recommendations for modifying, expanding, or eliminating the TRID Rule…

Closing Disclosure NMLS Number for Different MLO

Closing Disclosure NMLS Number for Different MLO

Adam Witmer
Regulation Z, SAFE Act, TRID

In this Compliance Clip (video), Adam explains what NMLS should go on the Closing Disclosure when one lender issued the Loan Estimate, but a different loan officer is now assigned to the loan. This situation can be tricky for financial institutions that don’t have much turnover with their lending staff. Fortunately, Adam busts out some commentary to guide the way on how to comply.

LE Requirements for Online Applications Not Submitted

LE Requirements for Online Applications Not Submitted

Adam Witmer
TRID

Adam uses this Compliance Clip (video) to discuss what to do in situations where applications containing the six pieces of information (constituting an application under TRID) are located on an online application system, but the borrower never hits the “submit” button, so a Loan Estimate doesn’t go out to the applicant within 3 days of collecting this information (if ever). In other words, Adam answers the question of whether collecting the six pieces of information in an online application where the borrower doesn’t submit the application constitutes a received application under TRID, requiring an LE?

CFPB Updates TRID FAQs Again

Adam Witmer
Regulation Z, TRID, Regulatory Update

The CFPB has again updated the TRID FAQs on their website. This update incorporates five new questions and answers relating to providing loan estimates to consumers. As has been the case with the previously released FAQs, these five new questions don’t really tell us anything we didn’t already know. That said, we will be including a review of these FAQs in our 3Q 2019 Quarterly Compliance Update program (planned to be released sometime in October 2019.

CFPB Releases Factsheet on TRID Applicability for Assumptions

Adam Witmer
Regulatory Update, TRID

On May 1, 2019, the CFPB issued a Fact Sheet discussing TRID applicability for assumptions.  This six-page document answers the question of whether Loan Estimates (LEs) and Closing Disclosures (CDs) are required for assumptions and contains two main parts: 1) a flowchart and 2) a narrative discussion. The flowchart is a quick reference that highlights the major questions to be answered when determining if a Loan Estimate and Closing Disclosure are required for the assumption transactions described above. The narrative discussion provides general information that may be useful when determining if a Loan Estimate and Closing Disclosure are required, including information related to each of the major questions set forth in the flowchart.

As you would expect

Revised Loan Estimates After Rate Lock

Adam Witmer
Regulation Z, TRID

For years now, I have been advocating that there is only one reason why a revised Loan Estimate must absolutely be issued: when an initially floating rate is subsequently locked.

Sure, there are other reasons a financial institution can issue a revised loan estimate, such as when there is a valid changed circumstance, but the only time a revised Loan Estimate is absolutely required is when an initially floating rate is subsequently locked.

While this reason for a revised loan estimate may seem simple, there are actually some questions that arise with the requirement to provide a revised Loan Estimate from a rate lock.  For example, you may be asking one of the following questions:

  • Is a written rate lock agreement required for the revised Loan Estimate trigger?

  • Is a revised Loan Estimate required after a rate expiration or for a rate extension?

  • Is a revised Loan Estimate required when a rate is locked after a Closing Disclosure has been issued?

  • Is a revised Closing Disclosure required when a rate is locked after a Closing Disclosure has been issued?

New TRID FAQs - Funny Joke or Something Else?

Adam Witmer
TRID, Regulatory Update, Regulation Z

I have spent a bit of time studying comedy.  I’m no expert by any means, but I’m always intrigued by the details of how things work, and comedy is no exception.  I figure that once I understand how something like comedy works, I will be able to better use it and appreciate it.

When we look at the art of comedy, there is one well-known element that seems to be….

(Click here to see how this post relates to the new TRID FAQs - and we promise it does!)

How to Calculate 10% Tolerance Under TRID

Adam Witmer
Regulation Z, TRID

Though estimate tolerance rules have been around before TRID, “good faith,” tolerances, and refunds/cures seem to still be a challenge for many lenders and creditors.  This is concerning as tolerances/cures are one of the higher-risk areas (like rescission) that creditors really need to ensure they are doing appropriately as deficiencies can result in significant fines, penalties, and enforcement actions.  

In reviewing the challenges related to calculating “good faith” and providing appropriate refunds/cures, it appears that there still seems to be quite a bit of confusion relating to how a creditor must calculate tolerances in the 10% tolerance bucket.

TRID 2.0 Total of Payments Tolerance

Adam Witmer
TRID, Regulation Z

The changes made by TRID 2.0 were interesting.  On one hand, a few things made significant changes to the way we have always done things.  On the other hand, however, the majority of changes were fairly minor in nature or didn’t seem to affect the majority of financial institutions.  One question we have received a few times relates to the new TRID 2.0 rules for total of payment tolerances.  When TRID 2.0 was first announced, this seemed to be one of biggest changes included in the rules. Now that TRID 2.0 is in affect, however, some may be wondering what all of the fuss was about relating to the TRID 2.0 tolerances for total of payments.

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