Compliance Updates

March: Weekly Compliance Updates

TRID Hot Topic Series: March idsDoc System Software Release

March 27, 2015

Late Friday, March 20, 2015, IDS’s Development department successfully deployed a much-anticipated TRID-related update to its flagship idsDoc System.

This particular release enables the idsDoc System to produce the entire first page of both the Loan Estimate (LE) and Closing Disclosure (CD). It also enables the idsDoc System to produce the Adjustable Payment (AP) Table along with the Adjustable Interest Rate (AIR) Table. Further, it added all the textual disclosures that require data entry on the LE/CD. Best of all, the most difficult behind-the-scenes calculations related to the LE/CD were added to the system.

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TRID Hot Topic Series: Addressing Industry TRID Concerns

March 20, 2015

Over the past several months, the IDS Compliance Updates blog has addressed each of the Top 20 TRID Implementation Issues promulgated by a professional speaker at recent MBA conferences. Other TRID-related posts date back to April, 2014, when many people were just beginning to turn their focus from the Qualified Mortgage/Ability-to-Repay implementation aftermath to the new TRID disclosures. Now, almost a year later, IDS and others in the mortgage industry are fully engaged in making this the most successful regulatory implementation yet.

TRID Hot Topic Series: Managing the 3 Business Days Before Consummation Waiting Period

March 13, 2015

TRID requires that the consumer receive the Closing Disclosure (CD) 3 business days prior to consummation. The Official Interpretation to the rule states:

[The CD] must be received by the consumer no later than three business days before consummation. For example, if consummation is scheduled for Thursday, the creditor satisfies this requirement by hand delivering the disclosures on Monday, assuming each weekday is a business day. For purposes of [this section], the term “business day” means all calendar days except Sundays and legal public holidays. See, 1026.19(f)(1)(ii).

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TRID Hot Topic Series: Up-front Fee Restriction

March 6, 2015

The TRID rule imposes some up-front fee restrictions on Creditors. See, § 1026.19(e)(2)(i)(A), (B). Here’s the CFPB’s discussion, directly from the preamble to the TRID rule, as to why it chose to impose a restriction on charging consumers fees until after a creditor receives some kind of affirmative action from the consumer:

Section 128(b)(2)(E) of TILA provides that the “consumer shall receive the disclosures required under [TILA section 128(b)] before paying any fee to the creditor or other person in connection with the consumer’s application for an extension of credit that is secured by the dwelling of a consumer.” 15 U.S.C. 1638(b)(2)(E). This provision is implemented in § 1026.19(a)(1)(ii). Although RESPA does not contain a similar provision, Regulation X does. See § 1024.7(a)(4). However, unlike Regulation Z, Regulation X prohibits a consumer from paying a fee until the consumer indicates an intent to proceed with the transaction after receiving the disclosures. Id. As discussed below, both Regulation Z and Regulation X provide an exception only for the cost of obtaining a credit history or credit report, respectively.

Thus, Regulation X [and TRID] require[s] consumers to take an additional affirmative step before new fees may be charged. (Emphasis added.)