TRID - The When and Why of Revised Disclosures

WHEN: The Consumer Financial Protection Bureau (CFPB) published a final rule to implement the Truth-in-Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rules on November 20, 2013. TRID rules and guidance from the CFPB continue to evolve. One of the stated goals for the new integrated disclosures was to reduce the need for revised disclosures. No progress has been made on that goal; the frequency of revised disclosures has increased.

Dealing with revised disclosures has become one of the major challenges of TRID compliance. The frequency of revised disclosures is much greater than anticipated. The intricate timing requirements for the revision process are problematic. Just determining when a new disclosure may be given is not always clear.

WHY: Proper handling of revised disclosures can, in certain circumstances, reduce creditor liability. Mishandling revised disclosures can result in Truth-in-Lending Act violations and violations of Section 5 of the FTC Act (Unfair or Deceptive Acts or Practices). The rules are complex, and CFPB guidance on this aspect of TRID is lacking.

Some questions to consider

  • Are revised disclosures required or merely permitted?
  • Is a revised disclosure allowed when no changed circumstance is present?
  • What are the timing requirements for a revised Loan Estimate or Closing Disclosure?
  • Does providing a revised disclosure always reset the permitted tolerance?
  • What is the link between revised disclosures and UDAP/UDAAP liability?

This two-hour webinar answers these questions and provides a thorough review of the timing, content, and cure requirements for revised disclosures. TRID veterans and TRID rookies will benefit from this review of the rules for revised disclosures.

Covered Topics:

  • The timing and delivery requirements of the Loan Estimate and the Closing Disclosure
  • When a revised Loan Estimate may be issued; including situations such as changed circumstances, borrower requests, and expiration of terms
  • When a revised Loan Estimate should be issued
  • The timing and content rules for a revised Loan Estimate and for a revised Closing Disclosure
  • Documentation requirements for revisions
  • When estimates are considered to be "in good faith" and the applicable tolerances
  • The circumstances under which a revised disclosure resets the allowed tolerance
  • Changes before consummation that do or do not require a new waiting period
  • Whether a changed circumstance can occur after delivery of the Closing Disclosure
  • When refunds are required and how to make and disclose the refund
  • Rules regarding changes due to events occurring after consummation; and
  • How mishandling revised disclosures may result in UDAP/UDAAP violations

Who Should Attend?

Mortgage loan department managers, compliance officers, loan officers, auditors and others with responsibilities for preparing, delivering or auditing integrated disclosures