When do the new disclosures become effective and for which transactions?

The new disclosures are effective for applications received on or after October 3, 2015. They apply to all closed-end loans securing real property. The following loans are excluded:
  • HELOC
  • Reverse Mortgages
  • Loans secured by mobile home (not attached to real property)
  • Partial exemption for certain junior lien loans associated with housing assistance loans for low/moderate-income consumers*
  • Creditors making five or less mortgage loans per year
*Note: Partial exemption for certain mortgage loans. The special disclosure requirements in §1026.19(e), (f), and (g) do not apply to a transaction that satisfies ALL of the following criteria:
  • The transaction is secured by a subordinate lien;
  • The transaction is for the purpose of:
    • Down payment, closing costs, or other similar home buyer assistance, such as principal or interest subsidies;
    • Property rehabilitation assistance;
    • Energy efficiency assistance; or,
    • Foreclosure avoidance or prevention.
  • The credit contract does not require the payment of interest;
  • The credit contract provides that repayment of the amount of credit extended is:
    • Forgiven either incrementally or in whole, at a date certain, and subject only to specified ownership and occupancy conditions, such as a requirement that the consumer maintain the property as the consumer’s principal dwelling for five years;
    • Deferred for a minimum of 20 years after consummation of the transaction;
    • Deferred until sale of the property securing the transaction; or,
    • Deferred until the property securing the transaction is no longer the principal dwelling of the consumer.
  • The total of costs payable by the consumer in connection with the transaction at consummation is less than one percent of the amount of credit extended and includes no charges other than:
    • Fees for recordation of security instruments, deeds, and similar documents;
    • A bona fide and reasonable application fee; and,
    • A bona fide and reasonable fee for housing counseling services.
  • The creditor complies with all other applicable requirements of this part in connection with the transaction, including without limitation the disclosures required by §1026.18.
Citation(s): §1026.2(a)(17)(v); §1026.3(h); §1026.19(e)(1)(i)
Disclaimer: The above information is intended for general information purposes with the goal of assisting Ellie Mae’s customers in complying with the new KBYO regulations. This information is provided as a courtesy to Ellie Mae’s customers and Ellie Mae makes no representation or warranty regarding the accuracy of the information set forth herein, and you may not rely on this information to ensure your company’s compliance with the KBYO regulations. This FAQ should not be construed as legal advice or opinion on any specific facts or circumstances, including the application of the KBYO regulations. You are advised to consult your own compliance staff or attorney regarding your specific residential mortgage lending questions or situation to ensure your compliance with all applicable laws and regulations.
disclosures closed-end loans real property excluded loans date effective transactions transaction type disclosure requirements

CFPB announcement regarding the delay of TRID

The Consumer Financial Protection Bureau is delaying until October 3, 2015, the effective date of the TILA-RESPA Final Rule and the related TILA-RESPA Amendments. In light of certain procedural requirements under the Congressional Review Act (CRA), the TILA- RESPA Final Rule and the TILA-RESPA Amendments cannot take effect on August 1, 2015, as originally provided by those rules. To comply with the CRA and to help ensure the smooth implementation of the TILA-RESPA Final Rule, the Bureau is extending the effective date of both the TILA-RESPA Final Rule and the TILA-RESPA Amendments beyond the additional minimum period required by the CRA to October 3, 2015, as proposed. The Bureau is also making certain technical amendments to the Official Interpretations of Regulation Z to reflect the new effective date and technical corrections to two provisions of Regulation Z adopted by the TILA-RESPA Final Rule.

The full statement from CFPB Director Richard Cordray can be viewed here

Popular KBYO questions

When do the new disclosures become effective and for which transactions? Part 1: Rule Applicability What happens in October when your final forms are new but initials are old? Part 4: Loan Estimate – Timing & Consumer Receipt For electronic delivery of disclosures, after a borrower agrees to accept electronic delivery in compliance with the ESIGN Act must all disclosures be sent through an ESIGN compliant system, or can a lender email a scanned copy of a document through normal email? Can the borrower return the document by email as an attachment? Part 3: Loan Estimate – Miscellaneous Questions If an application is received prior to October 3, 2015 and a Good Faith Estimate was provided to a consumer should a HUD-1 Settlement Statement and Final TIL Disclosure Statement or a Closing Disclosure be provided to the consumer when the consummation date is on or after October 3, 2015? Part 1: Rule Applicability Do you define “exempt” to mean we are not “allowed” to use the new forms or not “required” to use them? Can we send the new forms on a HELOC for example in lieu of the old? Can we use the new disclosures on all transactions? Part 1: Rule Applicability Can you confirm coops are excluded from the new disclosures since they are not secured by real property? Part 1: Rule Applicability Are transactions with 25 acres and more exempt? Part 1: Rule Applicability When can we start the new disclosures? Part 1: Rule Applicability What if no lender credits are decided until the loan closing, does a new Loan Estimate need to be provided to reflect this? Part 9: Revised Loan Estimate – Revisions/Re-Disclosure (including Timing & Delivery) If loan amount changes, then can the lender credits change? Part 9: Revised Loan Estimate – Revisions/Re-Disclosure (including Timing & Delivery)