TRID – Understanding the TILA-RESPA Integrated Disclosure (“TRID”) Volume 24

11 Feb

Volume 24

Does an attorney fee for the consumer’s legal representation have to appear on the Loan Estimate (LE) and the Closing Disclosure (CD)?

When reading the Rule as it applies to the inclusion of attorney’s fees on the LE and CD we find that in order to meet the good faith requirement a lender must include an attorney’s fee “if the subject property is located in a jurisdiction where consumers are customarily represented at closing by their own attorney, even though it is not a requirement…” Found in section 1026.19(e)(3)(iii) on page 1707.

Do I have to show the buyer’s purchase of the lawn mower on the CD?

As to the lawn mower and other such dealings, the Rule defines the items that must be shown in section H “other” on the LE and the CD as follows:

On the LE “an itemization of any other amounts in connection with the transaction that the consumer is likely to pay or has contracted with a person other than the creditor or loan originator to pay at closing and of which the creditor is aware at the time of issuing the Loan Estimate.” Found in section 1026.37(g)(4)  on page 1418.

On the CD “an itemization of each amount for charges in connection with the transaction that are in addition to [origination fees and lender required services] for services that are required or obtained in the real estate closing by the consumer, the seller, or other party… and the total of all such itemized amounts that are designated borrower-paid at or before closing.” Found in section 1026.38(g)(4) on page 1441.

Contact your compliance advisor when reviewing the above sections from the Rule before making a determination as to what you must disclose on the CD and when disclosure is not required.

This information provided is for informational purposes only and should not be used or relied upon for any other purpose. This information is not intended nor should it be construed as providing legal advice. Tradition Title Agency does not guarantee, and assumes no responsibility for, the accuracy, timeliness, correctness, or completeness of the information. Always seek the advice of competent counsel with any questions you may have regarding any legal issue.

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