CFPB issues guidance on construction loans/TRID

first_imgGood Tuesday morning from our nation’s capital! I’m happy to be in attendance alongside the nearly 5,000 credit union professionals at this year’s CUNA Governmental Affairs Conference (GAC). GAC is a tremendous opportunity to network with others in the industry and share stories of the #CUdifference with our legislators and regulators.As always, CUNA has done a great job of putting together a jam packed agenda here in Washington, D.C. As a result, I’ll keep today’s post brief. You know, it’s funny. I can actually hear my regular readers (all three of them) breathing a collective sigh of relief.Last month the Consumer Financial Protection Bureau (CFPB) was kind enough to issue some clarifying guidance on complying with the Integrated Disclosure Rule (TRID) relative to construction loans. While many in the industry found the guidance lacking in substance, at least it’s something. Let’s take a moment to review the key points:Construction Loans are Subject to TRIDWhile you were not required to provide the Good Faith Estimate (GFE) on construction loans as they are considered temporary financing under the Real Estate Settlement Procedures Act (RESPA), most construction loans do fall within the scope of TRID. As a result, both the Loan Estimate and Closing Disclosure are required to be provided in connection with a closed-end construction loan. continue reading » 5SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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