Meeting Today's TRID Requirements with CLARIFIRE®
The examples provided are representative of changes included in recent rulemaking. This information is not intended to be a full and complete depiction of the rule, but rather exemplify highlighted areas and the benefit of workflow when addressing the addition, modification and/or deletion of agency rules.
TILA-RESPA Integrated Disclosure (TRID) Final Rule (2017 Rule)
- Negative prepaid interest must be entered into the total Interest Percentage (TIP) calculation as a negative value - OR - must not be included in the TIP calculation.
- Transfer taxes and recording fees are no longer included under 1% total costs payable cap, assisting consumers with lower balance loans secure QM eligibility.
- Co-ops, regardless of state classification, must receive disclosures as a closed-end transaction; not including reverse mortgages.
- Consumers can shop for servicers offered by providers that are NOT on the Service Provider List; charges must be estimated based on "best information reasonably available."
- Good faith 10% cumulative tolerance applies to aggregate charges based on "best information reasonably available" for lenders title insurance, property taxes, property/homeowner's insurance premiums, as well as amounts in escrow, impound or reserve.
- A purchase transaction including a Simultaneous Subordinate Lien is subject to new requirements based
on clarification, including but not limited to the following:
a. The Summary of Seller’s Transaction table does not have to be included on Closing Disclosure for subordinate lien.
b. The sales price is not reflected in Calculating Cash to Close calculations for the subordinate lien on the Loan Estimate or Closing Disclosure.
c. Instructions have been detailed for using positive or negative numbers on the Calculating Cash to Close tables.
- In response to requests, clarification on proper disclosure for single and multi-phase Construction Loans
is reflected but not limited to the following:
a. Finance charge amounts, points and fees that would not be present if there wasn't a construction phase, must be allocated and disclosed only under the construction phase.
b. Appendix D of the 2017 rule is used to calculate period payments for disclosures; requirements for construction phase may differ from permanent phase, as well as when disclosed as a single transaction.
c. Reflected in the Loan Terms table and Adjustable Payments table, the maximum payment is calculated using the maximum outstanding principal balance during the construction phase.
d. Clarification is provided for disclosing disbursement date (purchase and non-purchase), construction and handling costs (before and after consummation), as well as determining costs disclosed on the Calculating Cash to Close table, and revised disclosure requirements.
TRID Improvement Act of 2017 (H.R. 3978)
In addition to the TILA-RESPA Integrated Disclosure (TRID) Final Rule (2017) Rule, issued in late 2017 by the CFPB to
clarify and amend mortgage disclosure requirements, the U.S. House of Representatives recently passed the TRID Improvement Act of 2017
(H.R. 3978), comprised of six bills covering the following:
Title I – H.R. 3978, TRID Improvement, incorporated under this bill of the same name amends the Real Estate Settlement Procedures Act (RESPA), specifically making sure disclosed title insurance premiums equal the amount of corresponding policies.
Title II – H.R. 3948,Protection of Source Code Act amends four separate acts, requiring the Securities and Exchange Commission (SEC) to issue a subpoena before a person has to provide trading source code or intellectual property.
Title III – H.R. 1645, Fostering Innovation Act, amends the Sarbanes-Oxley (SOX) Act for public company auditor-attestation requirements, providing an exemption to emerging growth companies.
Title IV – H.R. 4546, National Securities Exchange Regulatory Parity, amending the Securities Act of 1933, providing state registration exemption for authorized entities on the national securities exchange.
Title V – H.R. 2948, Secure and Fair Enforcement (SAFE) Mortgage Licensing Act, offering temporary licensing to loan originators that are in-between employers.
Title VI – H.R. 4061, Financial Stability Oversite Council Improvement Act, helping create more transparency in the designation of systemically important financial institutions (SIFIs).
Learn MoreSee why CLARIFIRE is a leader in delivering robust workflow management software to customers with complex compliance management needs. Click here to view additional details on CFPB compliance and requirements.
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