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Chrisman's Corner: A Reminder of Recent RESPA Changes

JMAC, our brokers, and the industry are a little over a week into the TILA-RESPA reform. Now that the dust has settled it is good for a recap of TRID inquiries that we have seen over the last few weeks.

What transactions are exempt from the rule? TRID does not apply to HELOCs, reverse mortgages, or mortgages secured by a mobile home or by a dwelling that is not attached to real property. These are not JMAC’s primary business lines, but some of our brokers originate them.

Our brokers should know what is considered a “business day for provision of the Loan Estimate. A business day applies when a creditor’s offices are open for carrying out substantially all of its business functions. Does the three-business-day waiting period apply when corrected Closing Disclosures must be issued to the consumer? This waiting period applies to changes to the APR, loan product, or addition of a prepayment penalty.

Are there any restrictions on how many days before consummation a revised Loan Estimate may be provided? The creditor may not provide a revised Loan Estimate on or after the date it provides the Closing Disclosure. The creditor must ensure that the consumer receives the revised Loan Estimate no later than four business days prior to consummation. 

When are creditors required to correct or revise Closing Disclosures? Creditors must re-disclose terms or costs on the Closing Disclosure if certain changes occur to the transaction after the Closing Disclosure was first provided that cause the disclosures to become inaccurate including changes occurring before or after consummation 

Lastly, are creditors required to provide corrected Closing Disclosures if terms or costs change after consummation? Yes, in an event in connection with the settlement occurring during the 30-calendar-day period after consummation that causes the Closing Disclosure to become inaccurate and results in a change to an amount paid by the consumer from what was previously disclosed. JMAC’s brokers should know that when a post-consummation event requires a corrected Closing Disclosure, the creditor must deliver or place in the mail a corrected Closing Disclosure not later than 30 calendar days after receiving information sufficient to establish that such an event has occurred. 

If you have any questions speak to your JMAC AE!