– 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. If you don’t know what TRID is, I recommend checking out our TRID compliance page to get a better understanding.
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