Source: https://www.ppdocs.com/TRID/FAQ.aspx
Timestamp: 2019-04-22 16:18:17+00:00

Document:
Loans secured by 25 acres or more.
Loans made by lenders who are not a "creditor" as defined in Reg Z, which make five or fewer mortgages in one year.
Can we provide a revised Loan Estimate even if the changed circumstance does not result in fees that exceed the applicable tolerance level(s)?
Yes. Creditors are not prohibited from issuing a revised Loan Estimate in these situations. However, creditors may not be able to use the revised fees when determining whether the fees charged are in "good faith". In other words, a voluntary revised Loan Estimate would not "reset" the tolerance levels and creditors would need to look back at a prior disclosure (e.g., the original Loan Estimate) to determine whether the charged fees were within the applicable tolerance levels.
Investment property transactions are covered by the TRID rule if the transaction is primarily for a consumer purpose. The TRID rule does not eliminate the business purpose exemption from Regulation Z or RESPA. If a loan is primarily for a business purpose (eg. The purchase of an investment property), then it is exempt from Regulation Z and RESPA. . . including the TRID rule. If a loan secured by an investment property is primarily for a consumer purpose however (eg. cash-out to pay college tuition), then the transaction is subject to Reg. Z and RESPA and must comply with the TRID rule.
On a 2nd lien transaction, am I required to disclose taxes and insurance information my Loan Estimate and Closing Disclosure?
Yes. Actual collection on 2nd liens is not required (unless specifically required when not collected on the first), but per regulation taxes and assessment information is required to be disclosed to reflect all borrower obligations related to the subject transaction. This will be reflected on Page 1 under Taxes and Assessments of both the LE and CD, and under the Escrow Disclosure section on Page 5 of the Closing Disclosure.
(vi) A reference to the information disclosed pursuant to paragraph (g)(3) of this section.
I have a consumer who wants to do a bridge loan on his investment property to purchase a new primary residence. Am I required to disclose per TRID?
Yes. Though using investment property, this would be consumer purpose. Bridge loans for the purchase of a primary residence are covered transactions per TRID.
1026.19(e) Mortgage loans secured by real property—early disclosures. (1) Provision of disclosures.(i) Creditor. In a closed-end consumer credit transaction secured by real property, other than a reverse mortgage subject to § 1026.33, the creditor shall provide the consumer with good faith estimates of the disclosures in § 1026.37.
When there is a credit for interest rate chosen going back to a consumer on the Loan Estimate, Can this be disclosed as a negative number in the % of Loan amount (Points) section?
No. Credits for interest rate chosen are given back to the borrower in Section J under Lender Credits. The %of Loan Amount (Points) section is specifically designated for discount point charges.
1026.37(f)(1)(i) The points paid to the creditor to reduce the interest rate shall be itemized separately, as both a percentage of the amount of credit extended and a dollar amount, and using the label “__% of Loan Amount (Points).” If points to reduce the interest rate are not paid, the disclosure required by this paragraph (f)(1)(i) must be blank.
4. Points. If there are no points charged in connection with the transaction to reduce the interest rate, the creditor leaves blank the percentage of points used in the label and the dollar amount disclosed under § 1026.37(f)(1)(i).
What Section of the Loan Estimate should OTP be disclosed in and what is the tolerance category if a consumer selects from the list of providers?
Owner’s Title Policy is considered an optional fee; therefore, disclosed in Section H under “Other Fees”. Whether or not the provider is selected from the list, Owner’s Title Policy is not subject to tolerance testing. The only case where tolerance testing would be required is when it is specifically required by the lender. §1026.37(g)(4)-Commentary-1. Owner’s title insurance policy rate. The amount disclosed for an owner’s title insurance premium pursuant to § 1026.37(g)(4) is based on a basic owner’s policy rate, and not on an “enhanced” title insurance policy premium, except that the creditor may instead disclose the premium for an “enhanced” policy when the “enhanced” title insurance policy is required by the real estate sales contract, if such requirement is known to the creditor when issuing the Loan Estimate. This amount should be disclosed as “Title – Owner’s Title Policy (optional),” or in any similar manner that includes the introductory description “Title –” at the beginning of the label for the item, the parenthetical description “(optional)” at the end of the label, and clearly indicates the amount of the premium disclosed pursuant to § 1026.37(g)(4) is for the owner’s title insurance coverage. See comment 37(f)(2)-4 for a discussion of the disclosure of the premium for lender’s title insurance coverage.
Why does the Down Payment/Funds from Borrower portion of the Calculating Cash to Close Section on the Closing Disclosure not matching the borrowers actual down payment?
The Down Payment/Funds from Borrower Section is calculated by taking the principal amount of the new lien and subtracting it from the sales price of the subject property.
We are proceeding with a Section 32 transaction for our consumer, with the new TILA-RESPA integration; can you tell me on which page my HOEPA Disclosure will appear that used to be on my Section 32 TIL?
The Section 32 Disclosure on the TIL will not be provided on the Loan Estimate or Closing Disclosure. On a Section 32 Loan the Section 32 TIL will still be required in addition to the TRID documents.
My processor accidentally disclosed the first time use Funding Fee on this VA transaction Loan Estimate, but when I put in the subsequent use fee in on my Closing Disclosure it is showing a cure for the entire difference. Can you tell me why?
The VA Funding Fee now falls into the 0% tolerance category. As operator error is not a valid reason for change in circumstance the creditor will be responsible for the cure for entirety of the difference.
1026.37(f)(2) Services You Cannot Shop For, Commentary-2. Examples of charges. Examples of the services and amounts to be disclosed pursuant to § 1026.37(f)(2) might include an appraisal fee, appraisal management company fee, credit report fee, flood determination fee, government funding fee, homeowner’s association certification fee, lender’s attorney fee, tax status research fee, third-party subordination fee, title – closing protection letter fee, title – lender’s title insurance policy, and an upfront mortgage insurance fee, provided that the fee is charged at consummation and is not a prepayment of future premiums over a specific future time period or a payment into an escrow account. Government funding fees include a United States Department of Veterans Affairs or United States Department of Agriculture guarantee fee, or any other fee paid to a government entity as part of a governmental loan program, that is paid at consummation.
My consumer will be using a POA on the transaction and I need to add a POA recording fee into the Closing Disclosure. Do I need to add this on a different line in Section E. Taxes and Other Government Fees, to identify it for the POA specifically?
No. A separate line may not be added to reflect recording fees, and this will not be separately itemized. This will added into the recording fee in the column as a bulk total.
§1026.37(g)(1) Taxes and other government fees. Under the subheading “Taxes and Other Government Fees,” the amounts to be paid to State and local governments for taxes and other government fees, and the subtotal of all such amounts, as follows: (i) On the first line, the sum of all recording fees and other government fees and taxes, except for transfer taxes paid by the consumer and disclosed pursuant to paragraph (g)(1)(ii) of this section, labeled “Recording Fees and Other Taxes.” (ii) On the second line, the sum of all transfer taxes paid by the consumer, labeled “Transfer Taxes.” (iii) If an amount required to be disclosed by this paragraph (g)(1) is not charged to the consumer, the amount disclosed on the applicable line required by this paragraph (g)(1) must be blank.
§1026.3737(g)(1) Taxes and other government fees, Commentary-. 1. Recording fees. Recording fees listed under § 1026.37(g)(1) are fees assessed by a government authority to record and index the loan and title documents as required under State or local law. Recording fees are assessed based on the type of document to be recorded or its physical characteristics, such as the number of pages. Unlike transfer taxes, recording fees are not based on the sale price of the property or loan amount. For example, a fee for recording a subordination agreement that is $20, plus $3 for each page over three pages, is a recording fee, but a fee of $1,250 based on 0.5 percent of the loan amount is a transfer tax, and not a recording fee.
2. Other government charges. Any charges or fees imposed by a State or local government that are not transfer taxes are aggregated with recording fees and disclosed under § 1026.37(g)(1)(i).
6. Deletion and addition of items. The lines and labels required by § 1026.37(g)(1) may not be deleted, even if recording fees or transfer taxes are not charged to the consumer. No additional items may be listed under the subheading in § 1026.37(g)(1).
The title company is requiring a new survey on our consumer’s transaction. Which section will we need to disclose this in on our Loan Estimate?
Depending on the situation this will most likely be disclosed in Section B or C. If the title company requires survey in order to insure, then by proxy this would be lender required, as the lender requires lenders title insurance. In most cases the title company selects the surveyor and this would be placed in Section B under Services You Cannot shop for with a 0 tolerance. If the title company allows the borrower to use the lenders list this may be disclosed in Section C. Services You Can Shop For.
37(f)(2) Services you cannot shop for., Commentary-2. Examples of charges. Examples of the services and amounts to be disclosed pursuant to § 1026.37(f)(2) might include an appraisal fee, appraisal management company fee, credit report fee, flood determination fee, government funding fee, homeowner’s association certification fee, lender’s attorney fee, tax status research fee, third-party subordination fee, title – closing protection letter fee, title – lender’s title insurance policy, and an upfront mortgage insurance fee, provided that the fee is charged at consummation and is not a prepayment of future premiums over a specific future time period or a payment into an escrow account. Government funding fees include a United States Department of Veterans Affairs or United States Department of Agriculture guarantee fee, or any other fee paid to a government entity as part of a governmental loan program, that is paid at consummation.
37(f)(3) Services you can shop for, Commentary- 2. Example of charges. Examples of the services to be listed under this subheading pursuant to § 1026.37(f)(3) might include a pest inspection fee, survey fee, title – closing agent fee, and title – closing protection letter fee.
Why do I need to use the Simultaneous Policy Calculator?
In many states, a consumer is entitled to a discount on loan title insurance policy when an owner’s policy will be simultaneously issued. When both a loan and owner’s title insurance policies will be purchased (“simultaneous issuance”), the TRID Rule requires the lender or settlement agent to disclose the title premiums on the Closing Disclosure in a way that is different than what is actually charged. Specifically, the Rule requires both policies to be disclosed at the full premium price with no discounts or enhanced pricing on both the LE and CD. Our calculator will apply the appropriate credits per the ruling to accurately reflect the borrowers Cash to Close.
I don’t know who the Selling Broker is on this transaction, where would I find this information?
This information can be found on the purchase contract, or provided by the title company.
What is the Texas Disclosure?
The Texas Disclosure or T-64, is a disclosure created by the Texas title industry in order to bring Federal and State laws into synchronization for closing purposes come October 3, 2015. It will be simultaneously issued with all closings which require a Closing Disclosure, to provide accurate breakdowns of Lenders Title Insurance and OTP, itemizes any additional recording fees not broken down on the Closing Disclosure, breaks out R.E. commissions paid to third parties, itemizes endorsements if disclosed in bulk, provides acknowledgment of receipt of the CD, and gives authorization to disburse.
I am working on a 12 month Bridge loan for our consumer on his rural primary residence to purchase an investment property up the street. He will be selling another investment property out of state to try and pay off the entire loan or we will consider taking to perm. Am I required to disclose per TRID? And if so, what is my Loan Purpose?
Yes. The technicality here is that the borrower will not be moving out, so additional verbiage cannot be added to the security instrument. Additionally, the property will attach to the borrower’s rural homestead; therefore, the transaction will become a 50(a)(6). The Loan Purpose would be Home Equity.
How to select the correct loan purpose for TRID Documents?
How do I count days?
Loan Estimate must be delivered or placed in the mail within 3 business days of application. A business day in respect to the Loan Estimate is defined in 1026.2(a)(6), as any day in which the creditor’s offices are open to the public to carry out substantially all of its business functions.
Closing Disclosure must be provided to the consumer at least 3 Business days prior to consummation. A business day in respect to the Closing Disclosure is defined as all calendar days except Sundays and federal legal public holidays (5 USC 6103(a) 6 floating + 4 fixed).
Mail delivery: if any disclosures required under § 1026.19(e)(1)(i) or § 1026.19(f)(1)(i) are provided to the consumer in person, they are deemed to have received them the same day. For any other method of delivery, (by mail, email, overnight, etc…) the consumer is considered to have received the disclosures three business days after they are delivered or placed in the mail. The creditor may, alternatively, rely on evidence that the consumer received the disclosures earlier than three business days. For example, if the creditor sends the disclosures via overnight mail on Monday, and the consumer signs for receipt of the overnight delivery on Tuesday, the creditor could demonstrate that the disclosures were received on Tuesday.
Where do I enter Credit Life Insurance on the Closing Disclosure?
As a product which is not required by the creditor, Credit Life Insurance will be disclosed in Section H, with notation of “(optional)”.
If the product is required to be purchased from the creditor in connection with the transaction, the fee will be disclosed in Section A. This will carry a zero tolerance if provided by the creditor or an affiliate, regardless of Section placement.
What is the problem with simultaneous issue title insurance?
In many states, a consumer is entitled to a discount on loan title insurance policy when an owner’s policy will be simultaneously issued. When both a loan and owner’s title insurance policies will be purchased (“simultaneous issuance”), the Rule requires the lender or settlement agent to disclose the title premiums on the Closing Disclosure in a way different than actually charged. Please see our full analysis and calculator for more information.
How do I answer the Liability after Foreclosure question on page 5 of the Closing Disclosure?
When you order documents through our system, we will default the selection based on the state the property is located in and several other factors. We will also provide links to relevant background.
How do I disclose a true one-time close loan under TRID?
The basic rules in Reg. Z around disclosing for a “construction to permanent” loan do not change after October 3. In other words, reg. Z currently allows the creditor to disclose a construction to permanent loan as 1 transaction (ie. 1 combined early and final TIL) or as 2 transactions (2 early and final TILS, 1 for the construction phase and 1 for the permanent phase). Our approach will be to document construction to permanent loans as 2 transactions, seperating the construction phase and the permanent phase.
When can I use the 60 day construction notice under TRID?
Per Reg. Z, Section 1026.19(e)(3)(iv)(F), the 60-day disclosure is used only in a Loan Estimate involving new construction [but not the construction loan itself], including the purchase of a home that has yet to be constructed or is currently under construction. The 60-day disclosure is not applicable to loans for improvement of existing dwellings, or home equity loans where proceeds will be used to construct improvements. For example, if a use and occupancy permit has been issued for the home prior to issuance of the LE, then the home is not considered to be under construction and the 60-day disclosure should not be used.
How has the fee tolerance testing changed under TRID?
Please see our TRID Tolerance Spreadsheet and sections of the applicable TRID regulations re tolerances.
Are prepaid property taxes held to zero tolerance?
No. When the CFPB finalized the TRID rule, it indiciated that its intent was for the final rule to mirror the regulation X tolerance levels for property insurance premiums, property taxes, homeowner's association dues, condominium fees, and cooperative fees. Unfortunately, in the original final rule, the CFPB missed the word "not" in the statement "are [not] subject to tolerances whether or not they are placed into an escrow, impound, reserve, or similar account."
The CFPB clarified its mistake in February 2016 by publishing a correction in the Federal Register to officially add the word "not" and clarify that prepaid property taxes are not subject to tolerance.
What are the signature requirements on TRID forms?
Signature lines may be added to the TRID forms at the lender’s discretion and are entirely optional. The purpose of signature lines on the LE and CD, if selected, is solely for the borrower to acknowledge receipt of the disclosure. Borrower signatures on the disclosures do not constitute borrower acceptance of the content of the disclosures or waive any borrower rights against the lender if there are errors in the disclosures. Whether or not to add signature lines is a business decision for the lender.
Why does the Closing Disclosure have place holders for Deed and Mortgage Recording fees and nothing else?
The CD has hard coded fields for only the deed and mortgage which can result in the total recording fees being greater than the sum of the deed and the mortgage if other documents also have to be recorded. The CFPB does not explain the reasoning behind this methodology in the TRID rule or the official staff commentary. The preamble to the rule, however, reflects that this issue was raised with the CFPB during the comment period. The CFPB’s only response in the preamble is that their consumer testing leads them to believe that disclosing recording fees this way does not cause consumer confusion.
Several national industry trade association commenters stated that the disclosure of the split of recording fees between those required for recording the deed and mortgage would omit recording fees for other documents (such as powers of attorney and subordination agreements), and therefore the disclosed amount under proposed § 1026.38(g)(1) would not equal the sum of the two disclosed components. Some of these commenters suggested deleting the breakout between charges associated with recording the deed and the mortgage. The Bureau’s consumer testing did not indicate that consumers were confused about the breakout. See Kleimann Testing Report at 186-87, 291. The Bureau believes that to introduce further breakouts would require additional space that may not be available on the form as tested and would not demonstrably change consumer understanding of the Closing Disclosure.
Where do I enter Survey Fee on the Closing Disclosure?
As a service required by the lender, a survey fee would be indicated in Section C on the Loan Estimate, with a Provider option listed on the Service Provider List. If selected from the list, the fee will move to Section B of the Closing Disclosure, and will be subject to a 10% tolerance. If not selected from the list, the fee will remain in Section C on the Closing Disclosure and will not carry a tolerance requirement.
Why should I collaborate with settlement agents?
The Closing Disclosure has TILA liability and therefore should be prepared by Lender. However, lenders do not have access to all the necessary information needed to populate the Closing Disclosure. Lenders must get the data such as the recording fee, seller’s realtor contact information, and various license numbers from settlement agents. Lenders should use a collaboration tool to minimize errors and improve efficiency.
What is the re-baseline problem?
The TRID rule does not permit “re-baselining” of the 10% tolerance bucket when a changed circumstance results in a fee increase that does not cause the aggregate fees in that category to increase by more than 10%. The Bureau determined that to allow such incremental “re-baselining” of the 10% tolerance category every time a such a changed circumstance occurred would effectively undermine the 10% tolerance threshold. Lenders should use calculators to determine the correct baseline amount for good faith analysis.
Where do I enter Warranty Deed on the Closing Disclosure?
A Warranty Deed is considered and associated with the transaction as a part of the real estate property contract; therefore, is disclosed in Section H, without the “(optional)” designation. Although the consumer is obligated for the cost, it is not imposed as a requirement by the creditor.
Where do I enter Owners Title Insurance on the Closing Disclosure?
As a fee required by the creditor, Owner’s Title Policy would be placed in Section C on the Loan Estimate with optional Provider indicated on the Service Provider List. If selected from the list, the fee will move to Section B on the Closing Disclosure.
If the Owners Title Policy is not required by the lender, it will be placed in Section H and notated with “(optional)”. If title provider is selected from the list, the 10% tolerance will apply with either Section B or H placement.
Why isn’t PPDocs putting the Owner’s Title Policy in section H when seller is obligated per the sales contract?
What is the alternative method to Calculate Cash to Close?
For transactions without a seller, TRID allows an alternative calculating cash to close table to be displayed on the LE and CD. If the creditor selects the optional method, the total amount of cash provided by the consumer at consummation can be calculated by subtracting the total closing costs, payoffs and payments from the loan amount. The consumer benefits from the alternative method because it omits various amounts not related to the transaction making the disclosures easier to understand.
(h) Calculating cash to close.
37(h)(2) Optional alternative calculating cash to close table for transactions without a seller.
1. Optional use. The optional disclosure of the calculating cash to close table in § 1026.37(h)(2) may only be provided by a creditor in a transaction without a seller. The use of this alternative table for transactions without a seller is optional, but must be used in conjunction with the disclosure under § 1026.37(d)(2).
Will PPDocs prepare Wells Fargo Fee Details Form?
Yes, we have the updated Wells Fargo Form for transaction covered by TRID. We will automatically include the new form when applicable.
Why should lenders show only one provider per service on the written list when they allow the consumer to shop?
Is the Estimate amount required on the Service Provider List?
There is not a definitive statement within the regulation citing you are required to indicate the estimated fee for the service, or conversely allowed to leave it off. The model form implies that the fee should be made available to the consumer if it is on your list. However, due to the lack of absolute requirement on this point we have made an option available to our clients to choose whether or not to include the estimated amount.
Can I upload my own identified service provider list?
Section 19(e)(1)(vi) sets out the regulatory requirement around the written list of service providers. The commentary to that section refers several times to the "model" form in Appendix H-27 to the Reg. The rule does not specifically state that the written list of service providers must be the H-27 form, but that form is set forth as a complaint model form under the rule.
1. The form must comply with all of the requirements of Reg. Z, Section 1026.19(e)(1)(vi). So the lender needs to review that section of the Reg and the official staff commentary, and make sure their form complies.
2. The lender should not use their own form on any secondary market loan. I'm pretty sure investors will want to see the model form. So use of a custom form should be limited to portfolio only.
Can consumer waive the required waiting days?
Yes, but it is very risky. A handwritten note explaining the emergency and approved by the investor may be required. Much like waiving the 3 day Right of Rescission.
After the borrower has received the Loan Estimate and provides an intent to proceed.
How do I add a fee that is not in the pick list?
The fee pick list allows you to quickly add fees to the disclosure. We have tried to prepopulate the list with common fees. If the fee is not in our list, you can still enter the details manually. If it is a fee that is used frequently, please send us the details (Name, section, APR, or FNMA 3% to support@ppdocs.com) and we will be glad to our pick list.
How do I test on PPDocs?
Testing with PPDocs is easy! Click here to register. Ensure you select TILA-RESPA Integrated Disclosures in the products you are interested in.
Once you have a username and password, we automatically add a Loan Estimate (LE) / Closing Disclosure (CD) loan file.
It gives you the option to view our screens and see how we filled them out.
As always, if you need further assistance, please email support@ppdocs.com and we will be glad to help you.
My system isn't ready. Can you help?
Of course we can! Our TRID system has been available since November 2014 and has been tested by many clients. We support the import of MISMO files or if your system is not capable, we can also utilize templates and profiles in order to minimize data entry and help you comply with the new rules. If you need assistance with getting started please email support@ppdocs.com and we will be happy to get you started.
Will PPDocs be able to interface with my system?
If your LOS is not listed above, as long as they can export a MISMO 2.6 or 3.3.x file we will be able to import the loan information into our system. Also, please send an email to your LOS partner requesting PPDocs to be added as a vendor and CC support@ppdocs.com.
I have uploaded data from my LOS but it does not appear to be populating in PPDocs correctly. What can I do?
We are aware of some discrepancies. A number of Loan Origination System (LOS) did not release their final specs until just a few days before TRID implementation date. We are seeing the data for the first time and we haven’t had sufficient testing. We will continuously make adjustments to the interface and improve it overtime. We constantly revisit our import routines to make them better. Please email support@ppdocs.com with screenshots of items that are not populating correctly.

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