TRID for Construction Loans
The new Integrated Disclosure rules became effective October 3, 2015, and many lenders are scrambling to master the details.
Many construction loans were exempt from the old disclosure requirements, but construction loans are covered and significantly impacted by the new rules. Virtually no details are available for construction loans.
The CFPB provided few details regarding completion of the Loan Estimate and Closing Disclosures for these loans. The regulation doesn’t contain sample forms for construction loans. The Commentary only mentions construction loans a few times, and those references provide little guidance for completing the forms.
Creditors continue to report problems producing construction loan disclosures using loan origination software (LOS) products. Apparently some LOS products can’t produce construction disclosures, while others produce disclosures for some construction loan options, but not others.
Lenders need solutions. Without details, how do you complete disclosures or check disclosures produced by your LOS? How do you determine what construction loan options to offer your customers? It doesn’t appear likely the CFPB will provide needed guidance in the coming months.
This webinar is designed to fill the void from the lack of regulatory guidance for construction loans. We’ll explain coverage and exemption rules, provide section-by-section guidance on completing the Loan Estimate and the Closing Disclosure for common construction loan options, and answer the many questions you have regarding proper disclosure of construction loans.
- When and why construction loans are covered by the new integrated disclosure rules
- How to complete the Loan Estimate and Closing Disclosure for:
- Construction only loans
- Combined construction/permanent loans
- Permanent financing that replaces construction financing
- How to estimate interest on a construction loan
- Impact of a construction only loan versus a lot purchase/construction loan
- When to disclose “Sales Price,” “Estimated Value” or “Appraised Value”
- How to determine the “Purpose” of the loan
- How to describe the “Product”
- Proper disclosure of projected payments
- How to disclose inspection fees
- How to disclose undisbursed construction funds
- Completing the “Cash to Close,” Optional Alternate Cash to Close” and the “Cash to Close” in the Borrower’s Summary of the Closing Disclosure
- When the AP Table is needed and how to complete it
- How to complete the “In 5 years” disclosure for short-term construction loans
- When to include the “60 days prior to consummation” disclosure
- And much more
Everyone involved in construction loans and construction loan products, compliance staff, and auditors.
Jack Holzknecht is the CEO of Compliance Resource, LLC. He has been delivering the word on lending compliance for 39 years. In 34 years as a trainer over 125,000 bankers (and many examiners) have participated in Jack’s live seminars and webinars. Jack’s career began in 1976 as a federal bank examiner. He later headed the product and education divisions of a regional consulting company. There he developed loan and deposit form systems and software. He also developed and presented training programs to bankers in 43 states. Jack has been an instructor at compliance schools presented by a number of state bankers associations. As a contractor he developed and delivered compliance training for the FDIC for ten years. He is a Certified Regulatory Compliance Manager and a member of the National Speakers Association.
Kelly M. Owsley, CRCM is Director of Training Services for Compliance Resource, LLC. Kelly’s career in banking began in 2000. Since then she has worked for financial institutions ranging in asset size from $250 million to $3 billion. Kelly has worked in numerous areas of the financial services industry including retail branch management, lending, product development and training. In addition, Kelly spent three years in a training and development role with CUNA Mutual Group servicing the largest credit union in the United States. Most recently, she served as the Vice President of Compliance, BSA Officer, and CRA Officer for a community bank in Kentucky where she was responsible for implementing and training all compliance related topics. Kelly holds a Bachelor of Science degree in Accounting from the University of Kentucky and is a Certified Regulatory Compliance Manager.
Institute of Certified Bankers: Visit http://www.icbmembers.org/login.aspx for instructions regarding self-reporting. Estimated credits: 2.5 CE Credits
- Live Webinar which includes 5 Day On-Demand - $265
- Six Month On-Demand – $295
- Live plus Six Month On-Demand – $365
- CD-ROM (Includes Six Month On-Demand) – $325
- Premier (Includes all options) – $395
- Additional Locations – $75
Online: Click here.
Phone: Call Total Training Solutions at (800) 831-0678
Register online up to day of event. Earlier registration allows time to check your computer for an optimal experience.