When it comes to the Intent to Proceed under TRID, what is an auditor looking for?
First, they’re going to look at how the applicant communicated their intent to the lender and that the lender documented it somewhere in the loan file. This creates a line in the sand and lets an auditor know that beyond that point in time the lender is allowed to charge for things over and above the credit report. Before you receive the intent to proceed, the only thing you can ask an applicant to pay for is a reasonable cost for a credit report. So, that communication from the applicant and documenting it are very important from an auditing standpoint.
This is just one of the many things we will tackle during our “Auditing TRID” webinar on April 18, 2019. This training is a little unique in that it takes a look at TRID from an auditor’s perspective. So, whether you’re the one being audited or the one doing the auditing, it’s a great fit for both!
TRID Changed Circumstances: Do I have to wait an additional three days?
We have to admit, the recently updated TRID FAQs were a little disappointing. There is really nothing new under the sun here. The first three have to do with providing a Closing Disclosure, encountering something that causes it to be inaccurate, and then having to provide it again. The main question being, “Do I have to wait an additional three days?” Well, it depends and that’s what those questions get into, but again, there’s nothing new. The fourth question has to do with the model forms that were published with the original TRID Final Rule. The question there being, “Can you rely on those model forms even though they may not quite line up with what the banking regulations say?” The Q&A confirms that if you rely on the model form, even though it doesn’t line up with the regulation, you would still be deemed to have complied. Again, this is nothing new but if you are unfamiliar with anything in these areas, by all means, give them a read.
If you’re looking for more in-depth TRID information, you’re in for a treat. Our team has been going across the country for about the last year and a half doing this program called Changed Circumstances, Revised Loan Estimates, and Revised Closing Disclosures.
Based on the feedback we’ve received, we decided to put it into a bankers training webinar format. We would love to have you join us on February 26th where we will spend two hours discussing changed circumstances and revising both the Loan Estimate and Closing Disclosure. Register today!
Back in November, we had our three-part webinar series on TRID From A to Z. As the title indicates, it was an opportunity for us to review TRID requirements from application through closing, all in a plain English format. Likewise, the questions you submitted help us to understand those areas that cause some confusion, regardless of whether we deal with them on a regular basis or just occasionally, and regardless of whether it’s something we’ve had to deal with since 2015 or something that recently came to light with TRID 2.0.
For example, the issue date on both the Loan Estimate and Closing Disclosure should reflect the date the disclosure is delivered to a consumer. Changing the issue date signifies that something has been changed or updated. Look at some of your Closing Disclosures – are you changing the issue date and if so, why? If a revised version of the disclosure was provided, you will want your file documentation to reflect why that was the case. In the case of the Closing Disclosure, if the issue date is changing even when the disclosure itself is not, you will want to change your practice. On the surface, this is a pretty technical issue, but you also don’t want anyone to be able to dispute when you provided the Closing Disclosure.
Our three-part TRID series webinar is still available for purchase if you are looking for some TRID training. Now, I’ll be honest, it’s a whole lotta TRID, but the good news is that with the recording, you can break it into shorter segments for what you have time for or for just how much TRID you want at one time. Find it in our Store today!
As you are probably well aware, TRID 2.0 blew up the changed circumstance world when it comes to revised Loan Estimates and Closing Disclosures. Are you struggling with the “Good Faith” Effect it created that took effect on October 1st? If so, we want to help!
TRID 2.0 requires that any revised disclosure (used to reset tolerances and/or for informational purposes) you provide…must be based on the best information reasonably available to you at the time it is provided. For example, say you issue a revised disclosure to reflect a higher loan amount. If there are other charges, unrelated to the loan amount increase, that have also changed, they must be reflected on the revised disclosure. However, the changes in the other charges, unrelated to the loan amount change, may not be used to determine either the 0% or 10% tolerance.
We’ve created a tool that will help guide you through and understand this difficult concept. Check out the video as Jerod Moyer explains this in more detail and walks you through the tool step by step.