Clarity on the TRID Construction Loan Requirements
– Why is there so much confusion with TRID and the construction loan requirements?
There are a couple of different reasons for it.
First off, TRID 1.0, the original roll-out of TRID completely missed the mark and ignored Construction Lending altogether.
Number two, the webinar that came out in March of 2016 was supposed to add some clarity and lessen the confusion with TRID, but it really only just added to it. They provided some options, they gave guidance, but really missed the mark by not providing examples. I mean examples on the actual loan estimate and Closing Disclosure forms.
The third thing is TRID 2.0, which is going to give us a laundry list of new instructions for TRID, doesn’t take effect until October 1st, 2018. It came out in July of last year, so we’re in this limbo period where you can do this or that and even piece-meal together. To me, that just adds to the confusion along the way. There’s one area that I want to tackle today and demonstrate this confusion and this timeline that goes along with it and that’s Construction Holdback. If you don’t know what TRID is, I recommend checking out our TRID compliance page to get a better understanding.
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Published
Jerod Moyer
2018/08/01
Jerod Moyer
Jerod is the leader of Banker’s Compliance Consulting’s training productions. He is a nationally recognized speaker. Whether it’s a conference, seminar, school, webinar or luncheon, it’s easy to stay engaged when he presents due to the amount of passion and energy he brings to each and every compliance topic. Jerod has spoken on behalf of the American Bankers’ Association, BankersOnline, many state banking associations, private compliance groups and financial institutions. He is a Certified Regulatory Compliance Manager (CRCM) and BankersOnline Guru. Jerod likes to spend his time (between reading regulations and producing compliance training!) relaxing at the lake with his wife and three children, following their activities or engaged in something sports-related!