TRID – The When and Why of Revised Disclosures
WHEN: The Consumer Financial Protection Bureau (CFPB) published a final rule to implement the Truth-in-Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rules on November 20, 2013.
TRID rules and guidance from the CFPB continue to evolve. One of the stated goals for the new integrated disclosures was to reduce the need for revised disclosures. No progress has been made on that goal; the frequency of revised disclosures has increased.
Dealing with revised disclosures has become one of the major challenges of TRID compliance. The frequency of revised disclosures is much greater than anticipated. The intricate timing requirements for the revision process are problematic. Just determining when a new disclosure may be given is not always clear.
WHY: Proper handling of revised disclosures can, in certain circumstances, reduce creditor liability. Mishandling revised disclosures can result in Truth-in-Lending Act violations and violations of Section 5 of the FTC Act (Unfair or Deceptive Acts or Practices). The rules are complex, and CFPB guidance on this aspect of TRID is lacking.
Some questions to consider:
- Are revised disclosures required or merely permitted?
- Is a revised disclosure allowed when no changed circumstance is present?
- What are the timing requirements for a revised Loan Estimate or Closing Disclosure?
- Does providing a revised disclosure always reset the permitted tolerance?
- What is the link between revised disclosures and UDAP/UDAAP liability?
This two-hour webinar answers these questions and provides a thorough review of the timing, content, and cure requirements for revised disclosures. TRID veterans and TRID rookies will benefit from this review of the rules for revised disclosures.
- The timing and delivery requirements of the Loan Estimate and the Closing Disclosure
- When a revised Loan Estimate may be issued; including situations such as changed circumstances, borrower requests, and expiration of terms
- When a revised Loan Estimate should be issued
- The timing and content rules for a revised Loan Estimate and for a revised Closing Disclosure
- Documentation requirements for revisions
- When estimates are considered to be “in good faith” and the applicable tolerances
- The circumstances under which a revised disclosure resets the allowed tolerance
- Changes before consummation that do or do not require a new waiting period
- Whether a changed circumstance can occur after delivery of the Closing Disclosure
- When refunds are required and how to make and disclose the refund
- Rules regarding changes due to events occurring after consummation; and
- How mishandling revised disclosures may result in UDAP/UDAAP violations
Mortgage loan department managers, compliance officers, loan officers, auditors and others with responsibilities for preparing, delivering or auditing integrated disclosures
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.