Know Before You Owe (KBYO or TRID)

Events after consummation

• An event in connection with settlement occurs within 30 calendar days following consummation causing the Closing Disclosure to become inaccurate.
• A change to amount paid by consumer from amount disclosed.
• A creditor must deliver or place in mail corrected Closing Disclosure not later than 30 days after receiving information sufficient to establish event occurred.

• Deliver or place in mail corrected Closing Disclosure no later than 60 calendar days after consummation

• Creditor refunds excess no later than 60 calendar days after consummation
• Creditor delivers or places in mail corrected Closing Disclosure reflecting refund no later than 60 calendar days after consummation

It depends on whether you have established a valid changed circumstance and done so within the time frame allowed for a revised Closing Disclosure (see comments below).

In order to reestablish a baseline for fees by use of the Closing Disclosure versus the last compliant Loan Estimate issued, Commentary ¶19(e)(4)(11)-1 states:

“Revised disclosures may not be delivered at the same time as the Closing Disclosure. Section 1026.19(e)(4)(ii) prohibits a creditor from providing a revised version of the disclosures required under §1026.19(e)(1)(i) on or after the date on which the creditor provides the disclosures required under §1026.19(f)(1)(i). Section 1026.19(e)(4)(ii) also requires that the consumer must receive a revised version of the disclosures required under §1026.19(e)(1)(i) no later than four business days prior to consummation, and provides that if the revised version of the disclosures are not provided to the consumer in person, the consumer is considered to have received the revised version of the disclosures three business days after the creditor delivers or places in the mail the revised version of the disclosures. See also comments 19(e)(1)(iv)–1 and –2. If, however, there are less than four business days between the time the revised version of the disclosures is required to be provided pursuant to §1026.19(e)(4)(i) and consummation, creditors comply with the requirements of § 1026.19(e)(4) if the revised disclosures are reflected in the disclosures required by § 1026.19(f)(1)(i). See below for illustrative examples:

1. If the creditor is scheduled to meet with the consumer and provide the disclosures required by §1026.19(f)(1)(i) on Wednesday, and the APR becomes inaccurate on Tuesday, the creditor complies with the requirements of §1026.19(e)(4) by providing the disclosures required under §1026.19(f)(1)(i) reflecting the revised APR on Wednesday. However, the creditor does not comply with the requirements of §1026.19(e)(4) if it provided both a revised version of the disclosures required under §1026.19(e)(1)(i) reflecting the revised APR on Wednesday, and also provides the disclosures required under §1026.19(f)(1)(i) on Wednesday.
2. If the creditor is scheduled to email the disclosures required under §1026.19(f)(1)(i) to the consumer on Wednesday, and the consumer requests a change to the loan that would result in revised disclosures pursuant to §1026.19(e)(3)(iv)(C) on Tuesday, the creditor complies with the requirements of §1026.19(e)(4) by providing the disclosures required under §1026.19(f)(1)(i) reflecting the consumer-requested changes on Wednesday. However, the creditor does not comply if it provides both the revised version of the disclosures required under §1026.19(e)(1)(i) reflecting consumer requested changes, and also the disclosures required under §1026.19(f)(1)(i) on Wednesday.”

A change from a 30 year fixed rate loan to a 15 year fixed rate loan is not a change to the loan product and would not require an additional three-day waiting period by itself. If the change from 30 years to 15 years causes the APR to become inaccurate, redisclosure and an additional three-day waiting period would be required.

No. A revised Loan Estimate cannot be provided on or after the date the Closing Disclosure has been provided.

A revised Closing Disclosure may be delivered at or before consummation reflecting any changed terms, unless:

• The disclosed APR becomes inaccurate.
• The Loan Product changes – prior Closing Disclosure becomes inaccurate.
• A Prepayment penalty is added.

In this case, if known prior to consummation, a revised Closing Disclosure would be required at or before consummation. If discovered after consummation since it affects the amount actually paid by the consumer, the creditor must deliver or place in the mail the corrected disclosure within 30 days after receiving the information.

1026.19(f)(2)(i) states that except for a redisclosure based upon an inaccurate APR, the addition of prepayment penalty, or a loan product change, “the creditor shall provide corrected disclosures reflecting any changed terms to the consumer so that the consumer receives the corrected disclosures at or before consummation.”

The three items are: 1) the APR becomes inaccurate (violates tolerances); 2) the addition of prepayment penalty; and, 3) a loan product change. These three items require redisclosure and a new waiting period of three business days prior to the loan closing.

For additional information requested regarding a loan product change, Commentary ¶19(f)(2)(ii)-1ii, states:

“Assume consummation is scheduled for Thursday, June 11 and the disclosures provided under §1026.19(f)(1)(i) disclose a product required to be disclosed as a ‘‘Fixed Rate’’ that contains no features that may change the periodic payment.

1. On Thursday, June 11, the loan product required to be disclosed changes to a ‘‘5/1 Adjustable Rate.’’ The creditor is required to provide corrected disclosures and delay consummation until the consumer has received the corrected disclosures provided under §1026.19(f)(1)(i) reflecting the change in the product disclosure, and any other changed terms, at least three business days before consummation. If, after the corrected disclosures in this example are provided, the loan product subsequently changes before consummation to a ‘‘3/1 Adjustable Rate,’’ the creditor is required to provide additional corrected disclosures and again delay consummation until the consumer has received the corrected disclosures provided under §1026.19(f)(1)(i) reflecting the change in the product disclosure, and any other changed terms, at least three business days before consummation.
2. On Thursday, June 11, the loan product required to be disclosed has changed to a ‘‘Fixed Rate’’ with a ‘‘Negative Amortization’’ feature. The creditor is required to provide corrected disclosures and delay consummation until the consumer has received the corrected disclosures provided under §1026.19(f)(1)(i) reflecting the change in the product disclosure, and any other changed terms, at least three business days before consummation.”

The requirement for the additional three business-day waiting period once the Closing Disclosure has been delivered applies under three specific scenarios: 1) an inaccurate APR, which violates the established tolerances; 2) the addition of a prepayment penalty; or, 3) a change in the loan product. For other revisions known prior to consummation the revised Closing Disclosure may be given prior to or at the loan closing (consummation).

Revisions to the TIP is not an item which requires re-disclosure prior to consummation, so if the TIP requires revision it may be provided prior to or at the time of consummation.