Frequently Asked Questions

Table of Contents
Introductory Questions ....................................................................................... 3
1. What is TRID? ................................................................................................................................. 3
2. What is the Effective Date for the TRID Guideline? ....................................................................... 3
3. Is there a specific TRID Ready Site? ................................................................................................ 3
4. Is there an Email Address available for TRID questions? ............................................................... 3
5. Will there be any TRID-specific Sales Training? ............................................................................. 3
6. Will there be any TRID Presentations for Correspondents? .......................................................... 4

Is There a TRID Grace Period? ............................................................................. 4

7. Will lenders have to provide the TRID forms for all applications received on or after October 3rd
even though the CFPB announced a regulatory enforcement grace period?................................ 4

Applications ........................................................................................................ 4
8. What is an application under the new TRID (TIL/RESPA Integrated Disclosure) Guidelines?........ 4
9. NEW – How will I know if an existing loan in my pipeline on October 3rd is subject to TRID? ...... 4

Timing Requirements and Waiting Periods ......................................................... 4

10. When are disclosures considered delivered? ................................................................................ 4
11. NEW – Are there any special requirements for electronically delivering disclosures? ................. 5
12. When are disclosures considered received? .................................................................................. 5
13. Can I include Saturdays to determine when the borrower received the Loan Estimate or Closing
Disclosure? ..................................................................................................................................... 5
14. If I deliver the Closing Disclosure on Friday the 14th, can the loan close on Tuesday the 18th? .. 5
15. How do the new TRID Rules affect the waiting period? ................................................................ 6
16. How soon can a person collect a fee from a potential borrower? ................................................ 6
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17. How soon can you collect and hold a borrower’s payment information....................................... 6
18. What events trigger a re-disclosure of the Closing Disclosure along with the restart of a new
three business day waiting period from the date the borrower receives the updated Closing
Disclosure? ..................................................................................................................................... 6
19. Will the Right of Rescission period be changing at all with TRID? ................................................. 6

Loan Estimate ..................................................................................................... 7

20. What documents were consolidated to create the new Loan Estimate Disclosure? .................... 7
21. NEW – How do I know which fees and amounts to disclose on the Loan Estimate? .................... 7
22. NEW – For TPO transactions, is broker compensation disclosed on the Loan Estimate? If so,
where should it be disclosed? ........................................................................................................ 7
23. NEW – If the lender or TPO broker’s compensation is based upon a percentage of the loan
amount and the loan amount increases, can the compensation amount increase?..................... 7
24. NEW – Are there any special rules regarding how to itemize fees on the Loan Estimate? ........... 7
25. NEW – What are the rules regarding quoting Homeowner’s, Flood, and Other Hazard
Insurance? ...................................................................................................................................... 8
26. NEW – Do transfer taxes need to be disclosed on the Loan Estimate if the seller is paying for
them? ............................................................................................................................................. 8
27. NEW – If the borrower has waived impounds, do the amounts for taxes and insurance need to
be disclosed on the Loan Estimate? ............................................................................................... 8
28. NEW – If there is a discounted rate for simultaneous purchase of Lender’s and Owner’s Title
Insurance, how do I disclose the discount? ................................................................................... 8
29. Can the borrower receive the Loan Estimate after the Closing Disclosure?.................................. 8
30. Where can I locate more about the Loan Estimate?...................................................................... 9

Closing Disclosures - General .............................................................................. 9

31. NEW – I understand that the borrower must receive the Closing Disclosure at least 3 business
days prior to consummation. Can the borrower sign closing documents within the 3 business
day waiting period but not receive the funds? .............................................................................. 9

Fee Tolerances .................................................................................................... 9

32. What are the fee tolerances under the new TILA-RESPA Integrated Disclosure rules? ................ 9
33. What is the definition of an “affiliate” regarding fees subject to the 0% tolerance? .................... 9
34. NEW – Is there a tolerance limit if a borrower selects a provider that was not on the Written
List of Service Providers (SSP) for a service in the ‘Services You Can Shop For’ section of the
Loan Estimate? ............................................................................................................................. 10
35. NEW – Can the fees in the “Services You Cannot Shop For” section that are subject to a 0%
tolerance (such as appraisal fee or credit report) increase if the lender requires additional
services? ....................................................................................................................................... 10

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Introductory Questions

1. What is TRID?
The Dodd Frank Act directed the Consumer Financial Protection Bureau (CFPB) to implement
regulations to combine the disclosures required under the Truth in Lending Act (TILA) and the
Real Estate Settlement Procedures Act (RESPA). The purpose of these changes was to simplify
the information provided and assist with consumer understanding. To that end, the CFPB
consolidated four separate disclosures into two new disclosures, the Loan Estimate and the
Closing Disclosure. The TILA/RESPA Integrated Disclosure is also referred to as TRID.
Implementation of this change is scheduled for October 3, 2015.
Refer to April 4, 2015 Coming Soon – TILA/RESPA Integrated Disclosures InfoStream for more
information on changes.
2. What is the Effective Date for the TRID Guideline?
The new rules apply to applications received on or after October 3, 2015.
Note: An application under the new TRID (TIL/RESPA Integrated Disclosure) Guidelines is
considered received when the loan originator or creditor receives the following six points of
data:
 Name  Gross Monthly Income  Estimate Value
 SSN  Property Address  Loan Amount Sought

Refer to the Applications section for more information.

3. Is there a specific TRID Ready Site?
A TRID Ready Site has been added to Our Caliber. The TRID Ready site will host all
Communications, Resources, Frequently Asked Questions and any other pertinent information
related to TRID as it becomes available.
TRID Ready
(Our Caliber>Production>TRID Ready)
(Our Caliber>Operations>TRID Ready)
4. Is there an Email Address available for TRID questions?
An email address has been created to receive questions related to TRID. Questions and answers
will be aggregated and added to the FAQ.
TRIDQuestions@CaliberHomeLoans.com
5. Will there be any TRID-specific Sales Training?
TRID Overview Sessions will cover general information regarding:
 TRID Quick Facts
 Definition of an application
 Timing Requirements
 Fee Tolerance Changes, and
 Introduction to the Loan Estimate and Closing Disclosure
 Role specific TRID implementation
Training announcements and registration information will be coming soon.

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6. Will there be any TRID Presentations for Correspondents?

Caliber will be providing announcements, resources and trainings for our Correspondents.

Is There a TRID Grace Period?

7. Will lenders have to provide the TRID forms for all applications received on or after
October 3rd even though the CFPB announced a regulatory enforcement grace period?
Even though the CFPB has announced an enforcement delay for the TRID rules, all lenders will
be expected to use the new forms for applications received on or after October 3, 2015. While
the CFPB announced that they will delay enforcement, the delay only applies to those making a
good faith effort to comply.

Applications
8. What is an application under the new TRID (TIL/RESPA Integrated Disclosure) Guidelines?
Any application is received when the loan originator or creditor receives the following six points
of data:
 Name  Gross Monthly Income  Estimate Value
 SSN  Property Address  Loan Amount Sought

9. NEW – How will I know if an existing loan in my pipeline on October 3 rd is subject to TRID?
If the loan originator has 6 points of data on October 3rd, the loan is covered under RESPA 2010
and will continue to follow the current rules and use the GFE, TIL and HUD-1.

If the loan originator has 5 points of data or less and the 6th point of data is received on or after
October 3rd, the loan is covered under TRID and will follow the new rules and use the Loan
Estimate and Closing Disclosure.

Caliber will generally rely on the 1003 date to determine whether the loan is covered under
TRID.

Timing Requirements and Waiting Periods

10. When are disclosures considered delivered?
Disclosures are considered delivered by any of these methods:
 Handed to the borrower
 Placed in the mail for USPS delivery
 Sent electronically through an ESIGN-compliant electronic delivery method, such as via
DocuSign. See Caliber’s Electronic Signatures Policy in AllRegs and the list of approved E-
Sign compliant vendors.

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11. NEW – Are there any special requirements for electronically delivering disclosures?
Yes, to be considered delivered in compliance with the law, electronic delivery must be E-Sign
Act compliant. This means the loan originator must provide certain disclosures before
requesting consent from the borrower.

12. When are disclosures considered received?

Disclosures are presumed received by the borrower 3 business days after they are delivered. A
creditor may rely on actual proof of receipt to shorten that timeframe.
Examples include receiving copies of signed and dated disclosures, electronic delivery
confirmations, and overnight receipt confirmations.
13. Can I include Saturdays to determine when the borrower received the Loan Estimate or
Closing Disclosure?
Yes, the definition of business days for receipt and waiting periods includes Saturdays (like
rescission). It includes all days, except Sundays and federal public holidays.
14. If I deliver the Closing Disclosure on Friday the 14th, can the loan close on Tuesday the
18th?
It depends on when the borrower(s) received the Closing Disclosure. The closing waiting period
is 3 business days after the borrower(s) receives the Closing Disclosure. The borrower is
presumed to receive the disclosures 3 business days after they are delivered. Therefore, without
actual proof of receipt soon than Tuesday the 18th, the earliest closing date would be Friday the
21st.

Example assumes creditor does not have actual proof of receipt < 3 business days from delivery.

If you have actual proof of receipt by the borrower(s), you may rely on that proof. If the creditor
has proof the disclosures were received by the borrower on Friday the 14th, closing could occur
as early as Tuesday the 18th.

Creditor has actual proof disclosures were received the day they were delivered.

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15. How do the new TRID Rules affect the waiting period?
Current Rules
MDIA waiting periods for borrower charges and
consummation date are based on the delivery and
receipt of the creditor’s Truth-in-Lending Statement
(TIL).
New Rules
MDIA waiting periods for borrower charges and
consummation date are based on the delivery and
receipt of the Loan Estimate.

16. How soon can a person collect a fee from a potential borrower?
TRID prohibits a person from imposing any fee, other than a bona fide and reasonable fee for
obtaining a consumer’s credit report, until the borrower:
 Receives the Loan Estimate, AND
 Expresses an Intent to Proceed
Please note, Caliber will continue to accept a borrower’s verbal or written intent to
proceed to open the appraisal portal. A signed intent will be required prior to docs.
17. How soon can you collect and hold a borrower’s payment information.
The law explicitly prohibits collecting and holding a borrower’s credit card number, check, or
other payment until the borrower has received the Loan Estimate and has expressed an intent
to proceed.

18. What events trigger a re-disclosure of the Closing Disclosure along with the restart of a
new three business day waiting period from the date the borrower receives the updated
Closing Disclosure?
The following changes require a new three business day waiting period from the date the
borrower receives the updated Closing Disclosure:
 The disclosed APR becomes inaccurate
Note: The APR becomes inaccurate when it increases over 0.125%
 The loan product changes (product amortization or payment attribute change)
Examples: Loan switches from Fixed to Adjustable; Interest Only feature is added.
 A prepayment penalty is added
Note: Caliber does not offer any loan programs with pre-payment penalties.
19. Will the Right of Rescission period be changing at all with TRID?
No, TRID will not impact the right of rescission waiting period. For owner-occupied refinance
loans, the borrower will have until midnight of the third business day after the signing date to
rescind the loan.

Example under TRID: If the initial Closing Disclosure is received by the borrower on September
1st, the borrower can sign the closing documents on September 4th. If the borrower signs on
September 4th and rescission applies, the rescission period would expire midnight after the 8th
and funds can be released on September 9th.

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Loan Estimate
20. What documents were consolidated to create the new Loan Estimate Disclosure?
To make it easier for borrowers to understand their mortgage terms, the Consumer Financial
Protection Bureau (CFPB) consolidated the Good Faith Estimate (GFE) and the Truth-In-Lending
(TIL) disclosure into the new Loan Estimate (LE) disclosure.

21. NEW – How do I know which fees and amounts to disclose on the Loan Estimate?
The law requires the loan originator to provide an estimate of the settlement costs in good faith.
This means the loan originator must use the best information reasonably available at the time
disclosures are provided by obtaining an actual fee quote for the specific transaction using due
diligence. Templates or general fee estimates from similar transactions are not sufficient as
costs can vary from transaction-to-transaction.

22. NEW – For TPO transactions, is broker compensation disclosed on the Loan Estimate? If
so, where should it be disclosed?
Borrower-paid broker compensation must be disclosed in the Loan Costs column on page 2 of
the Loan Estimate in the Originations Charges section.

Lender-paid broker compensation is not disclosed on the Loan Estimate, but it will be disclosed
in the Origination Charges section of the Closing Disclosure in the Paid by Other column.

23. NEW – If the lender or TPO broker’s compensation is based upon a percentage of the loan
amount and the loan amount increases, can the compensation amount increase?
The only fee that may be disclosed as a percentage of the loan amount on the Loan Estimate is
the Discount Fee. However, if the lender or TPO broker otherwise disclosed their compensation
as a percentage of the loan amount, and the loan amount increases due to a valid changed
circumstances, the compensation can increase relative to the loan amount increase.

24. NEW – Are there any special rules regarding how to itemize fees on the Loan Estimate?
Please review the CFPB’s Guide to the Loan Estimate and Closing Disclosure forms for
instructions on itemizing fees. TRID requires fees to be alphabetized in chronological order and
requires rounding of certain amounts. In addition, there are additional technical rules regarding
quoting title-related fees and optional fees. See the Guide at:

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http://files.consumerfinance.gov/f/201508_cfpb_tila-respa-integrated-disclosure-guide-to-the-
loan-estimate-and-closing.pdf

TRID will require a tolerance cure if the name of the actual fee charged for tolerance fees does
not match the exact name of the fee disclosed on the Loan Estimate. It is imperative to quote
accurate fees for the specific transaction to avoid tolerance issues.

25. NEW – What are the rules regarding quoting Homeowner’s, Flood, and Other Hazard
Insurance?
While these fees are not subject to tolerances, the loan originator is required to use the best
information reasonably available when providing a Loan Estimate. If the loan requires
Homeowner’s or other insurance, the loan originator must provide an estimated amount on the
Loan Estimate or the disclosures would be considered not in good faith.

26. NEW – Do transfer taxes need to be disclosed on the Loan Estimate if the seller is paying
for them?
If the purchase contract apportions all or some of the transfer taxes to the seller, the creditor is
not required to disclose that amount on the Loan Estimate. When a creditor does not have the
purchase contract when it issues the Loan Estimate or the purchase contract is silent, the
creditor must use the apportionment of transfer taxes provided for by State or local law, or
common practice when State or local law is unclear.

27. NEW – If the borrower has waived impounds, do the amounts for taxes and insurance
need to be disclosed on the Loan Estimate?
Yes, even if the borrower waives impounds, the loan originator is required to disclosed an
estimated monthly payment amount for taxes, insurance and assessments related to the
property.
28. NEW – If there is a discounted rate for simultaneous purchase of Lender’s and Owner’s
Title Insurance, how do I disclose the discount?
The undiscounted rate for Lender’s Title Insurance must be disclosed in the Borrower Can Shop
section of the Loan Estimate, which is subject to a 10% tolerance. This will require the loan
originator to specifically obtain a quote for undiscounted Lender’s Title Insurance.

Any discount should be applied to the quote for Owner’s Title Insurance in the Other Costs
column of the Loan Estimate. The premium for a simultaneous policy discount is calculated by
taking the full owner’s title insurance premium, adding the simultaneous issuance premium for
the lender’s coverage (if any), and then deducting the full premium for lender’s coverage.

29. Can the borrower receive the Loan Estimate after the Closing Disclosure?
The Loan Estimate cannot be received by the borrower after the Closing Disclosure –
consequently, the Loan Estimate must be received by the borrower no later than four (4)
business days prior to consummation.

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30. Where can I locate more about the Loan Estimate?

The TRID Correspondent Communication-to-Date Summary lists all messages published on this
topic.

Closing Disclosures - General

31. NEW – I understand that the borrower must receive the Closing Disclosure at least 3
business days prior to consummation. Can the borrower sign closing documents within
the 3 business day waiting period but not receive the funds?
No, a borrower cannot sign loan documents during the 3 business day waiting period.

Fee Tolerances
32. What are the fee tolerances under the new TILA-RESPA Integrated Disclosure rules?

33. What is the definition of an “affiliate” regarding fees subject to the 0% tolerance?
TRID subjects charges paid to affiliates of creditors, brokers and/or loan originators (discussed
above) to a 0% tolerance. Affiliate is defined under the Bank Holding Act of 1956 (the “Act”) as
“any company that controls, is controlled by, or is under common control with, your company.”
The Act further states that any company has control over a bank or over any company when:

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 The company directly or indirectly or acting through one or more other persons owns,
controls, or has power to vote 25% or more of any class of voting securities of the bank
or company;
 The company controls in any manner the election of a majority of the directors or
trustees of the bank or company;
 The Board determines, after notice and opportunity for hearing, that the company
directly or indirectly exercises a controlling influence over the management or policies
of the bank or company. [12 USC Section 1841(a)(2)]
Although the test under sections (A) and (B) are straightforward and appear to require more of a
direct ownership interest than the definition of affiliate under RESPA, section(C) is broad and
could likely apply to companies with less than 25% ownership if other evidence of a direct or
indirect controlling influence.

34. NEW – Is there a tolerance limit if a borrower selects a provider that was not on the
Written List of Service Providers (SSP) for a service in the ‘Services You Can Shop For’
section of the Loan Estimate?
If a borrower selects a different provider than the provider on the SSP, the fee will not be
subject to a tolerance limit as long as the provider is not an affiliate of the lender, TPO broker or
loan originator. If the provider is an affiliate, the fee will be subject to a 0% tolerance limitation.

35. NEW – Can the fees in the “Services You Cannot Shop For” section that are subject to a 0%
tolerance (such as appraisal fee or credit report) increase if the lender requires additional
services?
Under the rules, the loan originator must make the disclosure based on the best information
reasonably available at the time the disclosure is provided to the consumer, and must use due
diligence in obtaining the information. When the additional services would not have been
required or known at the time of initial disclosures, the increased cost may be disclosed if the
increase is due to a valid changed circumstance (COC).

Failure to include the 2nd Appraisal or Appraisal Review fee when it is required for a specific
product or failure to include a Condo Certification fee when the loan originator knew the
property was a condominium when they disclosed, would not be considered valid COCs.

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