Important TRID Update for Downpayment and Closing Cost Loans
Get your Minnesota Housing downpayment and closing cost loans purchased under TILA RESPA Integrated Disclosure (TRID) regulation. You can also find this information in a resource guide on our Downpayment and Closing Cost web page.
Deferred Payment Loans
You have three options for Deferred Payment Loans. Minnesota Housing prefers you use Option 1. If you are not able to use Option 1 due to system or other constraints, use Option 2 or 3.
Barring further guidance from the CFPB during the learning period, all lenders will need to use Option 1 by April 1, 2016. If your company will not be able to use Option 1 by April 1, 2016, please contact Michael Peterson.
Option 1: TRID Disclosures
You charged a Loan Processing Fee (fee must be at least $10, but no more than $100). The loan was covered by TILA in addition to RESPA.
Action: Provide the following TRID disclosures to U.S. Bank HFA Division:- Loan Estimate
- Closing Disclosure
Option 2: RESPA Disclosures
You did not charge a loan processing fee and did not use the RESPA partial exemption (12 CFR §1026.3(h) and HUD 1024.5), the loan was not covered by TILA but was covered by RESPA.
Action: Provide the following RESPA documents to U.S. Bank HFA Division:- Good Faith Estimate (GFE)
- HUD 1
Option 3: Company Generated Disclosures
You used the partial exemption (12 CFR §1026.3(h) and HUD 1024.5), so the loan was not covered by TILA but was covered by RESPA. You are responsible for ensuring the loan meets the 1% fee cap and that no fees in excess of this were charged to the borrower. Eligible fees are recording, application, and homeownership counseling.
Action: Provide a set of disclosures to U.S. Bank HFA Division that includes the elements required by 12 CFR Part §1026.18 (Regulation Z).* We are developing a sample disclosure for optional use with loans that use the partial exemption. We will notify you when it is available.
*Finance charge, APR, Total of payments due, Security interest, and Assumption policy are all covered with a TIL. Itemization of amount financed, terms of repayment, and a reference to the loan contract (NOTE) need to also be disclosed.
Monthly Payment Loans
Monthly Payment Loans are covered under TILA and RESPA and must follow TRID regulation.
Action: Provide the following TRID disclosures to U.S. Bank HFA Division:
- Loan Estimate
- Closing Disclosure
Learn More
To learn more about both the U.S. Bank overlays and how to get your downpayment and closing cost loans purchased under TRID, register for a Webinar on Thursday, November 19 from 10-11 a.m.
