Build Your Understanding of TRID Construction Loans

If you are a lender and you make closed-end, multiple advance loans to construct a consumer’s home, you need to be aware of the TRID requirements and how they can impact the transaction.

 

Unfortunately, it’s not quite as straightforward as other types of closed-end consumer home loans.  And, on top of that, while Appendix D of Truth in Lending isn’t exactly new, it is a huge player in the construction loan game as well.

 

Listen to the video as Jerod explains.

 

 

If you’re looking for the latest, greatest information regarding construction loans, you’re in luck!  We’ve put together a two-hour webinar called, “TRID All About Construction Loans” where we are going to get into the nitty gritty details in plain English.

 

We will also provide some sample disclosures including a NEW Construction-Permanent (one closing) ARM disclosure.  We hope you join us on July 16th, you don’t want to miss this!

 

Register NOW!

 

Published
2019/07/09
Jerod Moyer

 

Want more to see all the TRID Free Tools? Go HERE!
Want to see the latest Blogs on TRID? Go HERE and scroll down.

Want more TRID training? Go HERE!

TRID: Construction Loan Escrow Payment

Question: 

On a construction-permanent loan (one closing), should the escrow payment be reflected in the first column of the Projected Payments Table?  

 

BSA Training and Banking Regulations Compliance Consulting AdobeStock 118898100 1 300x200 - TRID: Construction Loan Escrow Payment

Answer:

It depends.

When disclosed as a single transaction and the construction phase is less than a full year, the first column should reflect payments during the construction and permanent phases, as well as any escrow (and/or mortgage insurance) payment.

 

Join us for the TRID: All About Construction Loans Webinar on July 16, 2019. We will answer all the questions submitted during the live webinar, in writing.

 

Register NOW!

 

Published
2019/06/21

 

Want more TRID Free Tools? See them HERE.

Find out more about TRID Construction Loans HERE. (scroll to see all our blogs regarding construction loans)

Construction Loan Sample Disclosures

Many of you have been asking about sample disclosures for construction loans in light of the TRID 2.0 changes and clarifications.  Updated construction sample BSA Training and Banking Regulations Compliance Consulting diane11 - Construction Loan Sample Disclosuresdisclosures are included in the materials for our, “TRID: All About Construction Loans” webinar and will also be available in our upcoming three-part webinar series, “TRID From A to Z”.

 

If you previously downloaded the Construction Loan Packet we had available as a Free Download on our website, it should no longer be relied on for disclosing construction loans, in light of the TRID 2.0 changes.  When we put that packet together, there was very little regulatory guidance specific to construction loans.  That all changed with TRID 2.0.  At Banker’s Compliance Consulting, one of our key principles has always been to teach you how to fish, rather than to just give you a fish.  In other words, we want you to understand not only how to do it, but the why behind the how.  With the expanded construction-specific guidance given with TRID 2.0, it’s just not possible to condense that information in the way be had before.  We do, however, still want to bring you that information in plain English!

 

So, if you are looking to learn more about construction loans or just more on TRID in general, consider one of our webinar options!

Check out our TILA-RESPA Integrated Disclosures overview page for more information on TRID compliance. 

 

Published
2018/10/23
Diane Dean

All About Construction Loans

Construction loans have caused a lot of havoc for the industry ever since the TRID Rule was first released.  The lack of guidance has left many of us BSA Training and Banking Regulations Compliance Consulting diane11 - All About Construction Loansfrustrated.  Fortunately, the industry asked for further clarification on these types of closed-end, multiple-advance loans and we got some with the TRID changes that become mandatory in October or as we lovingly refer to it “TRID 2.0”!  As with most things compliance-related, there were a few surprises in what the CFPB gave us.

 

We recently hosted a webinar entitled, “TRID: All About Construction Loans” that covers everything you need to know about doing construction loans under TRID.  If you missed it, don’t worry, you can still access it On-Demand.

 

If you do construction loans, you need to make sure you take a close look at these requirements!

Learn more about getting your construction loans with TRID compliance training and consulting here. 

 

What Others Said About the Webinar

Jim Bedsole @ BankSouth
One of the best presentation on any aspect of TRID that I’ve ever heard (and I’ve heard a lot).  Outstanding information in an easy to understand and follow format.  Great job, Jared!
Wendi Scobey @ Select Bank & Trust Company
Great training on TRID construction loans…. put in plain English. It was a fast-paced training but very informative and a manual is a great tool…they explain each section, cite regulation and provide calculation samples/examples.

 

Published
2018/08/22
Diane Dean

Does your financial institution make Construction Loans?

Sign Up Here – https://store.bankerscompliance.com/link/TRIDConst8-18

Does your financial institution make construction loans? Maybe the kind that has an interest-only feature that’s followed by a balloon payment at the end of the construction term?

 

If you make those kinds of interest-only construction loans, the TRID rules are going to be changing quite a bit for you and your team here on October 1st of 2018. For example, in the loan term section, there is going to be a requirement that you now state that the payment is going to change, where in the past you didn’t have to do that. Could be confusing for some of your lenders, possibly even confusing for some of the borrowers.

 

You’re also going to trigger the AP table, the Adjustable Payment table, on page 2, by indicating within the loan term section on page one that the payment will in fact change. There are several nuances that go into how you complete those sections. If you want to hear about more of those requirements, as well as all of the other things that go into TRID and construction loans, the nuances that are changing come October 1st of this year, I would invite you to join us on August 8th for our TRID All About Construction Loans webinar. We’d love to have you come and join in and listen to us talk about TRID construction in plain English. I hope to see you there. Thanks.

 

Learn more about TRID compliance and how our online bank training can help you.

 

To watch with script press the CC on the lower right of the video.

 

Published
2018/08/07
Jerod Moyer