Is an investment property owned by an individual or a second home loan covered TILA-RESPA Integrated Disclosure Rule?

The Integrated Disclosure Rule applies to all closed end consumer mortgage loan secured by real property purchased primarily for personal, family or household purposes, including construction loans, vacant land loans, 25 acres or more loans, or residential purposes including single family residences. It is the purpose of the loan and not use of property that determines whether the rules apply and the transaction requires the new disclosures. Settlement agents should ask the Lender to confirm the loan requirements.

Does the rule require a non-borrowing spouse to sign receipt of the closing disclosure?

The rule requires any borrower, who is obligated on the loan, to receive the Closing Disclosure three-business days before consummation. The integrated mortgage disclosure rule only provides the option for borrower disclosures (Loan Estimate and Closing Disclosure) to be signed if the signature blocks and accompanying language are included on the disclosures. Settlement agents should ask the lender for instructions regarding any signature of the Closing Disclosure at consummation.

The lender is asking us to show the loan endorsements on a separate line on the CD. Can you advise?

Depending on whether the consumer is given the option to shop for title, the endorsement premium should be shown in either Section B or Section C on a separate line with a description of the endorsement as “Title – Endorsements (ALTA 9, 8.1)” as instructed by the lender. If you are in a state with a mandatory disclosure form, such as the Texas Disclosure T-65, be sure to itemize endorsements on the line item for the endorsement so that it is clear to the consumer.

How to Disclose Discounted Rates, when known for re-issue rates, Military discounts, etc. on the Integrated Mortgage Disclosures?

The discounted rate should be calculated on the owner’s title policy premium or loan policy and then the discounted rate should be used to calculate the TRID simultaneous rate for the owner’s policy on the Loan Estimate and Closing Disclosure.

So we can only use the Buyers/Sellers settlement statements, NO MORE using the HUD?1 as the settlement statement?

Do not use the HUD-1 on TRID loan transactions. When the lender advises you that the transaction is covered by TRID, you will also provide/use the new ALTA Settlement Statement or state mandated disclosure in some cases.

Courtesy of Stewart Title

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