CFPB Publishes TILA-RESPA Integrated Disclosure FAQs

Last week, the Consumer Financial Protection Bureau (CFPB) published the first set of Frequently Asked Questions on the TILA/RESPA Integrated Disclosure (TRID) Rule as it applies to construction loans. The questions and answers in the CFPB’s TRID FAQs pertain to compliance with the TRID or TRID Rule. Reviewing these questions and answers is not a substitute for reviewing TILA, RESPA, Regulation Z, or its official interpretations (also known as the commentary). The statutes, Regulation Z, and its official interpretations are the definitive sources of information regarding the requirements.

The following topics are covered in the recent TRID FAQs:

Corrected closing disclosures and the three business-day waiting period before consummation

  1. If there is a change to the disclosed terms after the creditor provides the initial Closing Disclosure, is the creditor required to ensure the consumer receives a corrected Closing Disclosure at least three business days before consummation?
  2. Is a creditor required to ensure that a consumer receives a corrected Closing Disclosure at least three business days before consummation if the APR decreases (i.e., the previously disclosed APR is overstated)? 
  3. Does Section 109(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act affect the timing for consummating a transaction if a creditor is required to provide a corrected Closing Disclosure under the TRID Rule?

Model forms

  1. Does a creditor’s use of a model form provide a safe harbor if the model form does not reflect a TRID Rule change finalized in 2017?

Construction loans

  1. Are construction-only loans or construction-permanent loans covered by the TRID Rule? 
  2. Are there special disclosure provisions for construction-only or construction-permanent loans under the TRID Rule? 

Click here to review the Final TRID Rules published to the Federal Register December 31, 2013, last updated May 2, 2018.