Today we had a session on TRID 2.0 – and in 90 minutes we just scratched the surface of the 550+ pages (thankfully I had read most of it!) and what all the changes mean. One thing we know with certainty is the mandatory compliance date of October 1, 2018! That means banks now have just 90+ days to figure out what the changes mean, to adjust policies and procedures, work with platforms and processors to implement any changes, and re-train folks as necessary.
Specifically, TRID 2.0 touches on the following issues:
- Effective Date - Good Faith Period
- Informational Loan Estimates
- Written List of Providers
- Rate Locks
- No Tolerance
- Impact of Fee Decreases
- TIP clarification
- TOP clarification
- Escrow Disclosures
- Seller Credits
- The Black Hole Issue
- Construction loans
Here is just one change that I think was a solution in search of a problem. Specifically, the revised comment at 37(h)(1)(vi)-2 states that specific seller credits may be disclosed either in the Seller Credits line or “reflected in the amounts disclosed for those specific items under § 1026.37(f) and (g).”
• Example: If a seller agreed to pay for an appraisal and the cost for that appraisal was assumed to be $500, a creditor can either disclose the $500 fee and add $500 to the Seller Credits line, or disclose the appraisal fee as $0.
The CFPB stated in the preamble to TRID 2.0 (must reading!) that it “believes that under existing § 1026.37, creditors have the option to disclose specific seller credits either under § 1026.37(f) and (g) or under §1026.37(h)(1)(vi).”
I see a lot of questions - and work - between now and October 1, 2018 for all of us!