Doing compliance reviews and consultations all over the country, our review team looks at a crazy number of loan files each year, many of which are subject to TRID. A common error they see has to do with the intent to proceed. This is an important piece of your TRID compliance efforts because once you have the intent to proceed from the applicant, you can then ask them to pay for fees other than just the credit report. Auditors are looking for that point in time to ensure you didn’t charge for fees too soon. The Regulation does give financial institutions some flexibility as to how it would prefer to receive the intent to proceed from the applicant, but it is very clear that the intent to proceed must be documented. While your institution might choose to have a form signed by the applicant, others might just rely on a file comment from the lender. So, while there are options from an auditing perspective you still want to make sure that your lenders are documenting the intent to proceed and doing it in line with your financial institution’s procedures.
Jerod explains more in the video.
Published
2024/03/15