- Business Rules
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:
- 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
- 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.
CFPB announcement regarding the delay of TRID
The full statement from CFPB Director Richard Cordray can be viewed here