The TRID rule and forms do not apply to HELOC transactions. The TRID rule only applies to closed-end consumer credit transactions secured by real property. As HELOC transactions are open-end consumer credit transactions, they are not subject to the rule.
All mortgage insurance and its equivalent must be disclosed in line 2 of the Prepaids and Initial Escrow Payments at Closing sections on the pre-labeled lines for mortgage insurance. In the Prepaids section, multiple items of homeowners insurance and property taxes may be disclosed on separate lines if they are paid to different payees or payable on different terms. In the Escrows section, multiple items of property taxes may be listed separately if they are paid on different time periods. All other items must be grouped on the hardcoded lines provided.
DocMagic will dynamically include signature lines and/or the Loan Acceptance [Is this called Acceptance or Acknowledgment?] statement in lieu of signature lines based on lender configuration.
The amount last disclosed as the Total Closing Costs on the last Loan Estimate provided to the applicant is listed in the Loan Estimate column of the Calculating Cash to Close table of the Closing Disclosure. This amount may or may not represent amounts the lender was allowed to revise due to a changed circumstance. If there is a charge that exceeds the applicable tolerance, the table will include a statement of that fact.
The CFPB provided guidance about what would be considered an anti-deficiency protection in its November 18, 2014 webinar. The CFPB stated that for this disclosure, anti-deficiency protections include state laws that forbid lenders from seeking deficiency judgments, that may limit the amount lenders may collect, limit the availability of deficiency judgments to certain circumstances (such as the outstanding debt and fair market value of the property), or other state law protections.
The rule does contain various rounding requirements for the LE and CD, including different rounding rules depending on the section of the form. DocMagic has configured its systems to automatically round to the appropriate decimal places and in the appropriate sections on the forms.
The Loan Estimate discloses fees and charges the consumer is likely to pay in the transaction. Therefore, the Loan Estimate would disclose only the amounts to be paid by the borrower. The full amount of the charge will be present on the Closing Disclosure and divided amongst the columns for Borrower-Paid, Seller-Paid and Paid by Others, as appropriate.
The Loan Estimate and Closing Disclosure may be generated at any time without requiring a changed circumstance. The TRID rule does not prohibit lenders from providing a LE/CD at any time after application and before closing so long as the lender complies with any required waiting periods.
Fees will be assigned to the appropriate tolerance category based on the selection of various descriptors for each fee entry. Each fee will be assigned a TRID tolerance category based on whether the borrower is allowed to shop for that service, whether the lender provided a provider list for that fee and whether the borrower chose a provider on the lender’s provider list or not.
