Disclosing Construction Loans for TRID
Disclosing construction loans under the TRID requirements definitely has its challenges. In some instances, the Regulation isn’t always as clear as maybe it should be and, in others, the correct way to disclose these loans might seem a little quirky. However, that’s how TRID says it should be done. For example, say you have a six-month construction-only loan with interest-only payments and a fixed interest rate. The Loan Term will be disclosed as “6 mo.” but the Product will be disclosed as “5 mo. Interest Only, Fixed Rate”. That might seem strange but, in reality, there really will be only five true interest-only payments. The last payment will be a balloon payment that includes both interest and principal.
Jerod explains another example regarding disclosure of the Sales Price in the video.
2025/08/18
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!