Frequently Asked Questions
TRID | TILA–RESPA Integrated Disclosures
We’re with you when you’re planning a newly built home. Make informed decisions with help from LOANLYNX. Our constructions loans offer competitive rates, and we’ll work closely with you to ensure the financing process is as fast and streamlines as possible.
If you’re interested in buying a newly built home in a development or building a custom home from the ground up, talk with us to learn more about your construction financing options.
Q: When Does TRID Take Effect?
A: TRID applies to all loan applications taken on or after October 3rd, 2015.
Q: Which Forms are Required for Disclosure Now?
A: With TRID, the Loan Estimate (LE) replaces the Good Faith Estimate (GFE) and Initial Truth-In-Lending Disclosure (TIL).
- The Loan Estimate (LE) also replaces the Servicing Disclosure and the Appraisal Disclosure.
- CFPB’s new Home Loan Toolkit Brochure replaces the HUD Settlement Cost Booklet. It can be downloaded here.
- Consumers are still required to receive all other standard State & Federal Disclosures.
- For applications dated on or after 10/3/15, Brokers will no longer be required to provide borrowers with the Itemization of Fees Financed disclosure as these itemizations are essentially covered by the Loan Estimate (LE).
Q: Can Upfront Costs for Services on My Behalf, Be Paid Back at Closing?
- Yes, LOANLYNX may be reimbursed for upfront fees incurred at the outset of the loan file at the time of closing/funding.
- These fees would be reconciled on the Closing Disclosure (CD) and reimbursed at closing and disbursed through the Title Company.
- Examples of certain fees this may apply to include: Appraisal, Credit Report & Condo Cert fee(s).
Is LOANLYNX permitted to pay for the appraisal and NOT be reimbursed?
This depends, If a Broker is paying the cost of an appraisal, they may order the appraisal at any stage in the process. No need to wait for the loan to be locked, or the Borrower to receive disclosures and provide their Intent to Proceed.
When can an Appraisal be ordered at the borrower(s)’ Expense?
- For applications dated on or after 10/3/15, LOANLYNX can order the appraisal, at the borrower’s expense, as soon as our Loan Setup Department validates the Borrower’s Notice of Intent to Proceed is complete, accurate and signed by the borrower and “Accepts the Application”.
Q: When am I required to receive the Loan Estimate (LE)?
- Once LOANLYNX receives the six (6) pieces of information that constitutes a Loan Application, we are required to send a Loan Estimate (LE), Service Provider List and other required disclosures to the Consumer.
- Those six (6) pieces of information are as follows:
- Property Address
- Property Value
- Loan Amount
Q: What are the New Waiting Period Requirements?
- There are two waiting periods after receiving the Loan Estimate (LE).
- The Initial Loan Estimate (LE) must be provided to the borrower seven (7) specific business days before consummation (closing) of the loan.
- A Revised Loan Estimate (LE) must be received by the borrower four (4) specific business days before consummation.
Generally, there are six steps for financing a new home from a builder or developer.
- Initial stage — Now’s the time to discuss your financing. You can start by getting prequalified, which provides a rough idea of how much you may be able to borrow based on basic financial data you provide. You can also request a preapproval letter, which tells the builder you’re preapproved for a specific loan amount based on a preliminary credit review.
- Application — When you’re ready to sign a purchase contract, we’ll help you complete your mortgage application and provide options to protect your loan from interest rates changes during construction. Consult our application checklist (PDF)* for items you may need when applying.
- Approvals — We’ll work with you during the loan approval process so you can enjoy seeing your home being built.
- Exercise rate-drop options — During construction, extended lock programs may help protect against interest-rate fluctuations. A non-refundable extended rate-lock fee is required. If interest rates decline, you can exercise a one-time option to obtain new loan pricing, subject to approval. We’ll remain in touch to discuss your choices and answer questions.
- Completion of construction — In many counties, a final inspection determines that everything is ready so that you or your builder can get a Certificate of Occupancy (or its equivalent) from your local authorities.
- Move in — Your construction and financing are now complete. Congratulations and best wishes on your new home.
Q: What Is the Difference Between “General” and “Specific” Business Days?
- A: For delivering the LE, general business days are defined as days in which the lender’s offices are open to the public for carrying out substantially all of its business functions. AFR business days are Monday through Saturday, except AFR observed holidays.For purposes of consummation and rescission, specific business days are defined as all calendar days except Sundays and legal public holidays: New Year’s Day, Martin Luther King Birthday, Washington Birthday, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day.
Q: if Not Delivered in Person, When Is the LE Considered as Received?
- A: When the LE is not delivered in person, the borrower is considered to have received the LE 3 specific business days after it is delivered electronically or placed in the mail (unless evidence is provided demonstrating earlier receipt).Important Note: If the LE is delivered electronically via a document vendor that is compliant with the E-Sign Act (e.g. IDS and DocMagic) and the borrower does not access the LE, then it’s not considered as received. The document vendor is required to update the delivery date to the date it is placed in the mail due to not being accessed electronically.
Q: Can the Waiting Period Required After Receipt of the LE Be Waived?
A: The waiting period may be waived if the consumer has a bonafide personal financial emergency. This is determined by the facts surrounding the consumer’s individual situation and will be reviewed on a case-by-case basis.
Q: What Does the New Term 'Total Interest Percentage' (TIP) Mean?
A: TIP is the total amount of interest the borrower will pay over the whole life of the loan as a percentage of the loan amount.
Q: When Can My Appraisal be Ordered?
A: Your appraisal can be ordered once we have received executed acknowledgement of your Intent to Proceed.
Q: What are Fee Tolerances?
A: Fee Tolerances are
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