The TRID rule applies to closed-end consumer credit secured by real property which is defined by state law. Accordingly, whether or not the TRID Rule applies to co-ops is a question of state law that must be determined by the lender. DocMagic’s default is to treat co-ops as real property for purposes of the TRID Rule.
It would depend on whether the inspection is required or not. The inspections you reference would typically be considered “other costs” and thus you would disclose them under subsection H on page 2 of the Loan Estimate to the extent the creditor is aware of the charges. If the inspection is required by the lender, then it would fall under “loan costs” as either “can shop for” or “cannot shop for”, but that would be a decision made by the lender.
Seller credits will appear in the Cash to Close table on the Loan Estimate. The amount shown in the table on the Loan Estimate will represent both general and specific seller credits. Fees the seller is paying but which are otherwise the borrower’s responsibility under the terms of the legal obligation would still appear on the LE with an offsetting credit shown in Seller Credits. Seller credits that pay a specific fee on the Closing Disclosure would be shown as paid by the seller by showing the amount paid in the seller’s column.
The Loan Estimate will still show all fees which are the borrower’s responsibility under the terms of the legal obligation, with a corresponding credit from the lender that would cover all charges the borrower would otherwise be required to pay. On the Closing Disclosure, to the extent credits pay a specific fee, the amount would be listed in the Paid by Others column while any other general lender credits would be listed under section J of the Closing Disclosure in the Borrower-Paid at Closing column.
Per the Official Commentary to Regulation Z, “A creditor complies with § 1026.37(m)(6) if the disclosure reflects the creditor's intent at the time the Loan Estimate is issued." Accordingly, the disclosure must reflect your intention at the time of issuing the Loan Estimate. If that intent changes upon reissuance of the Loan Estimate, you may update the Loan Estimate to reflect the current intent.
Seller Credits which pay fees disclosed on the Loan Estimate will be listed as a lump sum under the Calculating Cash to Close section on the LE and CD. To the extent there are seller credits that do not pay a fee disclosed on page 2 of the Closing Disclosure, additional seller credits will be disclosed in the Summaries of Transaction.
For loans where a portion or all of the closing costs are offset by a credit or rebate provided by the creditor (sometimes referred to as ‘‘no-cost’’ loans), , the creditor discloses such credit or rebate as a lender credit under section J on both the Loan Estimate and Closing Disclosure.
Audits to support the TRID implementation are not yet available as they are currently under development. These audits will be released at a later date. For further information about DocMagic’s implementation of other TRID-related plans, features and audits that are in the process of development, please visit our TRID timeline on our Integrated Disclosure resource page.
Certain forgivable loans that do not require repayment of interest as determined by the terms of the note are not subject to the new form requirements. These loans, however, are not exempt from TILA, but only from the requirements for the Loan Estimate, Closing Disclosure and Settlement Cost Booklet under TILA. Please review the details of the limited exemption which can be found at 12 CFR 1026.3(h).
DocMagic does not support reverse mortgage transactions. Further, the TRID rule specifically exempts reverse mortgage transactions from the new TRID form requirements.
