Does your financial institution make Construction Loans?
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.
To watch with script press the CC on the lower right of the video.
Clarity on the TRID Construction Loan Requirements
– Why is there so much confusion with TRID and the construction loan requirements?
There are a couple of different reasons for it.
First off, TRID 1.0, the original roll-out of TRID completely missed the mark and ignored Construction Lending altogether.
Number two, the webinar that came out in March of 2016 was supposed to add some clarity and lessen the confusion with TRID, but it really only just added to it. They provided some options, they gave guidance, but really missed the mark by not providing examples. I mean examples on the actual loan estimate and Closing Disclosure forms.
The third thing is TRID 2.0, which is going to give us a laundry list of new instructions for TRID, doesn’t take effect until October 1st, 2018. It came out in July of last year, so we’re in this limbo period where you can do this or that and even piece-meal together. To me, that just adds to the confusion along the way. There’s one area that I want to tackle today and demonstrate this confusion and this timeline that goes along with it and that’s Construction Holdback.
Listen to the rest above………
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