Your comprehensive guide to CFPB’s newest TRID compliance updates

by James McClister

Guidance on construction loans providing special information booklet

(Changes to sub section) Section 15.1 – When must creditors deliver the special information booklet? (§ 1026.19(g))

Creditors must provide a copy of the special information booklet to consumers who apply for a consumer credit transaction secured by real property, except in certain circumstances (see below). The special information booklet is required pursuant to Section 5 of RESPA (12 U.S.C. 2604) and is published by the Bureau to help consumers applying for federally related mortgage loans understand real estate transactions. (§ 1026.19(g)(1))

  • If the consumer is applying for a HELOC subject to § 1026.40, the creditor (or mortgage broker) can provide a copy of the brochure entitled “When Your Home is On the Line: What You Should Know About Home Equity Lines of Credit” instead of the special information booklet. (§ 1026.19(g)(1)(ii))
  • The creditor need not provide the special information booklet if the consumer is applying for a real property-secured consumer credit transaction that does not have the purpose of purchasing a one-to-four family residential property, such as a refinancing, a closed-end loan secured by a subordinate lien, or a reverse mortgage. (§ 1026.19(g)(1)(iii))

Creditors must deliver or place in the mail the special information booklet not later than three business days after receiving the consumer’s loan application. (§ 1026.19(g)(1)(i))

In April 2015, the CFPB released the most recent version, titled Your home loan toolkit: a stepby-step guide (“Toolkit”), which is designed to be used in connection with the Loan Estimate and Closing Disclosure forms that became effective on October 3, 2015. This Toolkit replaced the document titled Shopping For Your Home Loan: Settlement Cost Booklet, originally published by HUD.

Multiple versions of the Toolkit, including a Spanish language version, are available at www.consumerfinance.gov/learnmore/#respa. There is an electronic version designed for web posting and interactivity as well as print ready PDFs. Copies can also be ordered from the Government Printing Office (www.gpo.gov). There are two formatted versions available, an 8- 1/2” x 11” version as well as an envelope size version.

Added sub section

  • Section 15.6 – Can market participants place their logo on the Toolkit cover?
  • Section 15.7 – If a creditor makes the Toolkit available on its website, does that satisfy the rule’s delivery requirement?

The absence of a HUD-1 comparison chart in the Closing Disclosure

Added sub section

  • Section 10.12 – The HUD-1 has a comparison chart to show the applicable tolerance levels and how the charges compare. Where is the equivalent chart on the Closing Disclosure?

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