TRID - Closing Disclosure
Terms in this set (61)
When must the CD be provided?
3 days before consumation
What changes to the CD reset the 3 day waiting period for the CD?
What to do with other changes?
Increase to APR beyond tolerance
Addition of prepayment penalty
Change in loan product
Other changes are handled with a revised CD
What are procedures for consumer to inspect CD before consummation
Must provide 1 day before consumation
What is disclosed under loan terms (5) on page 1 of the CD
1 loan amount
2 Interest rate
3 Monthly P&I
4 Prepayment penalty
how to disclose cash to close if use Alternative Cost at Closing table for a refi
Must use the alternative Calculating Cash to Close
What are the columns for costs on page 2 of the CD
borrower paid - at closing
borrower paid - before closing
Seller paid - at closing
Seller Paid - Before Closing
Paid by Others
What costs are on page 2 of the CD
What are the components of Loan Costs on page 2 of the CD
services borrower did not shop for
services borrower did shop for
What are the components of Other Costs on page 2 of the CD
Taxes and other Government Fees
Initial Escrow Payment at Closing
Can items required to be disclosed be deleted from Loan Costs on CD if not needed (e.g., points).
No. Comment 38(t)(5)(iv)-1
How is loan originator compensation (e.g., yield spread premium) that is not paid by the consumer disclosed on the CD?
As an Origination Charge - Paid by Others
How is loan originator compensation that is paid by the borrower disclosed on the CD?
Origination Charges with a designations of Borrower-Paid At Clsoing or Before Closing
How is amount of originator compensation not paid by borrower calculated?
Same as under Ability to Repay?
How are items that the consumer could have but did not shop for disclosed.
As items items consumer did not shop for (regardless of how disclosed on LE,
How are providers disclosed when consumer chooses from creditor list
As providers the consumer did not shop for,
How is the items on cost organized
Re-Alphabetized for changes compared to LE
What is included in the subtotal for Total Loans costs
Only items paid by borrower (before or at closing)
How are transfer taxes disclosed on CD
Individually itemized under Taxes and Other Government Fees (on the LE they are combined as transfer taxes)
What are prepaids on CD
Items paid by consumer in advance of 1st scheduled payment
What specifics are included in prepaids
Homeowners insurance premiums
Maximum of 3 others
What additional info is included about prepaid
applicable time period covered and total amount to be paid
On the escrow disclosure, how would you handle property taxes paid during different time periods (e.g., general assessment and school assessment)
How to calculate the aggregate amount of the escrow disclosure
Use Regulation X
What is included in Other on the Other Cost table on page 2
Items not required to be disclosed on the LE, including:
- Real estate brokerage fees
- HOA or condo fees paid at consummation
- Home warranty
- Home inspection
- Other fees paid at closing not required by creditor and not otherwise disclosed on CD
What is included in Total Closing Cost (borrower paid)
Total Loan costs
Plus Total Other Costs
Minus Lender Credits
How should a lender credit attributable to a charge listed on the CD be disclosed
Disclose as Paid by Others next to that item. Can use designation of (L)
How should creditor refund of excess fees be disclosed
As a lender credit with funds a statement such as "Amount is paid by the creditor to offset an excess charge, with funds other than closing funds"
How does page 3 of the CD change if no Seller
Summary of transaction can be replaced with Payoffs and Payments table and Alternative Calculating Cash to Close
In calculating Cash to Close, how are amounts on CD calculated compared to LE?
Same as amount on LE or revised LE
In calculating Cash to Close, how are final amounts calculated?
Use amounts on CD or determined at consumption
When amounts change how is disclosed
With a yes and reference to where consumer can find amount on the LE. EG, change in Seller Credit - Sell Seller Credits in Section L
If Total Closing Costs on CD is different than LE how to disclose on Page 3
Refer consumer to Total Loan Costs or Total Other Costs table on page 2 of the CD
How to disclose when closing costs exceed legal limit on page 3.
In the did this change column, disclose a statement that the closing costs exceed the legal limit with the dollar amount and a reference to the lender credit section on page 2 (if applicable)
What to disclose in the LE column of the Closing Cost paid before Closing
What is included for the alternative Calculated Cash to Close for transactions without a seller (5)?
Total Closing Cost
Closing Costs Paid before Closing
Total Payoffs and Payments
Cash to Close
How to disclose Closing Costs Financed (Payed from your Loan Amount on the Calculating Cash to Close table on page 3 on the Alternative Cash to Close Table
Include in 3rd column of the final item
How to round items on the CD when there is a comparison column to the LE
Round to nearest dollar amount to match corresponding disclosure on the LE
How to disclose when Total Closing Cost on Page 3 doesn't match Total Closing Cost (borrower-paid) Final Column on page 2 on the Alternative Cash to Close Table
Refer consumer to the Total Loan Costs or Total Other Costs subheading on page 2.
How to disclose if Total Closing Costs exceed Legal Limit on the Alternative Cash to Close Table
in the did this change column, Statement that increase is above the legal limit along with dollar amount of excess and reference to the Lender Credit on page 2
How to complete LE column of Closing Costs paid before Closing on the Alternative Cash to Close Table?
How to calculate Closing Costs Financed (Paid from Your Loan Amount) on the Calculating Cash to Close section of the Alternative Cash to Close Table page 3)
Final Loan Amount
Plus Total Payoffs and Payments
Only if the sum is greater than zero and less than Total Closing Costs minus Closing Costs Paid Before Closing
How does the summary of transaction table change if no seller?
Omit seller's transaction column
how are Closing Costs Paid at Closing calculated for inclusion on the Transaction Table?
Borrower Paid at Closing minus Lender Credits at closing from page 2
How are amounts paid to extinguish borrower prior lien disclosed on Transaction Table
Due from Borrower at Closing
How are amounts for outstanding real estate taxes disclosed on Transaction Table
Due from Borrower at Closingbefore year
What is included in Adjustments on the Transaction Table
Amounts owed at closing that are not disclosed elsewhere nor required to be disclosed as Due from Borrower at closing. E.g., rent, tenant security deposit
other adjustments . e.g., tax when paid in advance for entire year and closing is before year-end.
What is included in Seller credits on the Transaction Table
General credit not ties to a specific charge on page 2
Credits to seller for issues identified at walkthrough
How are amounts paid by family members disclosed
Other credits on Transaction Table
if a 2nd lien is paid off with funds other than closing funds how is it disclosed?
Other credits on Transaction table with statement that paid with outside of closing funds
Examples of adjustment for items unpaid by seller
HOA not yet paid, utilities used but not paid, rent collected for period beyond closing, MI or flood on assumed loan, taxes paid in arrears when closing is prior to start of year
How to disclose when money is due to borrower on transaction table
Cash to Close to Borrower check box
Who completes Seller's Transaction column of Transaction Table
What is included in property costs for purposes of the escrow disclosure on page 4
Coop or HOA
Certain insurance premiums or payments required by lender
components of escrow disclose
escrowed property costs over year 1
non-escrowed property costs over year 1
initial escrow payment
montly escrow payment
What is disclosure if no escrow account
estimated property costs over year 1
Do you use the adjustable payment table for seasonal loan product
is the Adjustable Payment Table or Adjustable Interest rate table used for loans that do not have that feature
When is the appraisal statement on page 5 of the CD required?
Higher Priced Mortgage Loans and Loans covered by ECOA.
Who's contact information is included on page 5 of the CD
Buyer real estate brokerage
Seller real estate brokerage
Is a signature required
No but if included must include disclosure that signature is confirming receipt of the form not acceptance of loan
What does pic mean
Paid outside of closing