Frequently Asked Questions

Know Before You Owe (KBYO or TRID)

Categories:

Closing Disclosure – Timing and Consumer Receipt

There is no requirement for the Closing Disclosure to be executed (signed) by the consumer under the rule, but you should ascertain whether or not this may be required by a specific loan program or investor in order to insure or purchase the loan. The use of signature lines for documenting receipt of the Closing Disclosure is at the option of the creditor.

There is not enough detailed information to adequately answer this question. It is recommended you follow the rule requirements with regard to timing of delivery of the Closing Disclosure and subsequent timing and requirements for any revisions to the Closing Disclosure in this scenario.

There is no requirement for the Closing Disclosure to be executed (signed) by the consumer under the rule, but you should ascertain whether or not this may be required by a specific loan program or investor in order to insure or purchase the loan. The use of signature lines for documenting receipt of the Closing Disclosure is at the option of the creditor.

For purposes under this rule, the closing date and consummation date are the same. However, there are allowances under the rule for documenting receipt versus reliance on the mailbox rule (received three business days after mailing). If you are planning on closing the loan based on this allowance and moving up the closing date, you will need to remember to adjust the date of consummation which can be provided at the loan closing.

This does not include the day of closing (consummation). The Closing Disclosure must be received by the appropriate consumers a minimum of three specific business days prior to the loan closing.

It depends. The Closing Disclosure must be received by the appropriate consumers a minimum of three specific business days prior to the loan closing, and if there is a change to: 1) the APR, violating tolerances applied to the APR; 2) the addition of a prepayment penalty; or, 3) a change in loan product, the three specific business day waiting period starts again. If not for one of these three reasons the revised Closing Disclosure may be provided at the loan closing. There is an allowance for waiving this requirement for a bona fide personal financial emergency only. It is recommended you use caution in applying this waiver in particular if you sell loans on the secondary market, since it is a rare occurrence for such a waiver to be acceptable to investors.

The Closing Disclosure must be received by the consumer no later than three specific business days before consummation. If the Creditor or Settlement Agent does not provide in person, then the consumer is considered to have received the Closing Disclosure three specific business days after it is placed in the mail.

The creditor shall ensure that the consumer receives the disclosure no later than three specific business days before consummation. If the Creditor or Settlement Agent does not provide in person, then the consumer is considered to have received the Closing Disclosure three specific business days after it is placed in the mail.



Disclaimer: The following information is intended for general information purposes with the goal of assisting ICE Mortgage Technology’s customers in complying with the new KBYO regulations. This information is provided as a courtesy to ICE Mortgage Technology’s customers and ICE Mortgage Technology makes no representation or warranty regarding the accuracy of the information set forth herein, and you may not rely on this information to ensure your company’s compliance with the KBYO regulations. This FAQ should not be construed as legal advice or opinion on any specific facts or circumstances, including the application of the KBYO regulations. You are advised to consult your own compliance staff or attorney regarding your specific residential mortgage lending questions or situation to ensure your compliance with all applicable laws and regulations.