The CFPB recently updated TILA-RESPA Integrated Disclosure (“TRID”) FAQs with guidance related to housing assistance loans, and how the Building Up Independent Lives and Dreams Act (“BUILD Act”) affects the TRID Rule requirements for qualifying loans.
The new FAQs address the existing partial exemption found in Regulation Z, 12 CFR § 1026.3(h) and the statutory partial exemptions added by the BUILD Act which allow creditors to opt out of providing the Loan Estimate and Closing Disclosure for certain housing assistance loans.
Under the BUILD Act, which took effect on January 13, 2021, creditors have the option of providing the HUD-1 Settlement Statement, Good Faith Estimate and TIL disclosures instead of the Loan Estimate and Closing Disclosure for qualifying loans. The FAQs provide that a housing assistance loan qualifies for the BUILD Act partial exemption if it meets the following criteria:
- The loan must be a residential mortgage;
- The loan must be offered at a 0 percent interest rate;
- The loan must only have bona fide and reasonable fees, and
- The loan must be primarily for charitable purposes by an organization described in the Internal Revenue Code section 501(c)(3) and exempt from taxation under section 501(a) of that Code.
A creditor must comply with all applicable disclosure requirements for whichever set of disclosures is provided. Also, creditors are still required to provide the Special Information Booklet when opting for the partial exemption under the BUILD Act.
For eligible housing plan programs, DocMagic offers the option to select a loan plan that provides TRID disclosures or TRID exempt disclosures. If you would like to request a change to disclosures provided for a specific plan, please contact DocMagic’s Customer Service.
