Anyone in the mortgage lending industry should be aware of the upcoming requirements with TRID implementation. Staying compliant with government rules can be complicated, but read on to learn more about the specific transactions that are covered by these new notification rules. Make sure that your company is prepared to comply with these requirements sooner rather than later; taking a week or two to begin implementing them ahead of time can make the transition easier and give you a chance to work out any major problems upfront.
What Fits Into the Requirement?
Not every transaction falls under the requirements of this rule. The rules does apply to the majority of closed-end credit transactions for consumers that are secured by real property. That being said, the following transactions do not fit into this requirement:
- Reverse mortgages
- Any chattel-dwelling loans (such as homes that are not attached to real property or loans secured by a mobile home)
- Any entity of person who provides less than six mortgages per calendar year
Bear in mind that there are a few other exceptions, notably for some transactions linked with housing assistance loan programs available to low-income and moderate-income consumers.
For companies that are required to provide the new Integrated Disclosures, you need to be aware that the October 3rd compliance date is approaching (it was extended recently from August 1). All applications received after the implementation date must initiate the lender providing the corrected disclosures to the consumer who starts an application. This cancels out the past process of providing GFE, Truth-in-Lending, and HUD-1 forms.
Disclosure Obligations for Transactions Falling Outside of TILA-RESPA
As mentioned above, there are some transactions that do not fit the bill for disclosure requirements under TILA-RESPA. The new integrated disclosures being used in other transactions do not have to be used in these situations, but creditors are still required to provide disclosures as usual. These include Truth-in-Lending, HUD-1, and GFE, where these are applicable.
For Transactions Receiving a Partial Exemption Due to Link to Housing Assistance Program
Creditors exempted as a result of being linked to a housing assistance program for low or modern income consumers do not have to comply with other typical disclosures, either. These creditors are exempted from providing the RESPA settlement statement, RESPA GFE, the RESPA settlement cost booklet, and the application servicing disclosure statements.
Loans Subject to TILA but Not RESPA
A loan that is subject to TILA but not to RESPA is still required to fall under compliance with the integrated disclosure requirements. This means any loans secured by vacant land or properties with 25 or more acres, construction-only loans, and credit extended over to estate planning or tax planning purposes.