Since October 2015, we have been focused on one big thing, DIRT. (TRID spelled backwards.) If a loan is secured by DIRT, your lender and loan admin procedures need to identify whether that property and borrower are covered by TRID.
Covered loans are closed end consumer purpose loans secured by real property. If not consumer purpose, not covered. If not closed end, not covered. If not secured by real property, not covered. Beyond that you can say good-bye to the prior exemptions such as more than 25 acres, construction, or if the trust is the borrower.
TRID is an acronym for Truth In Lending RESPA Integrated Disclosures.
Gone are the GFE and HUD settlement statements and now their closely related cousins have arrived, the Loan Estimate (LE) and Closing Disclosure (CD). I say gone, but if you still have an application around taken before October 3, 2015, you will still use the GFE and HUD forms.
In February, the CFPB realizing their user friendly booklet left much room for interpretation, came out with clarifications.
If you haven’t visited the CFPB to read their clarifications or attended training related to the recent clarifications, don’t delay. The clarifications are tremendously valuable. www.cfpb.gov