- Business Rules
For property-related costs (specifically insurance) on a construction loan where escrow will not be established, often builder’s risk insurance is not in place until vertical construction begins. Would we still need to disclose the builder’s risk under property related costs?If the cost of the builder’s risk insurance is being paid by the consumer and the costs are known prior to consummation for the construction loan, or can be estimated at the time of consummation, then in good faith they would be disclosed.
Citation(s): Commentary ¶37-1
CFPB announcement regarding the delay of TRID
The full statement from CFPB Director Richard Cordray can be viewed here