Know Before You Owe (KBYO or TRID)
Other Disclosure Effects (Other than LE or CD)
Yes, both booklets will continue to be required as applicable to the appropriate transaction. For purposes of the Loan Estimate and Closing Disclosures, the Settlement Cost Booklet has been promulgated under the title “Your Home Loan Toolkit” for use with applications received on and after 10/3/2015.
No. We have not yet heard anything from any of the states on this specific issue, but notifications will go out by ICE Mortgage Technology (AllRegs), as well as updates to our provided content, if and when we receive any updated information regarding movement by states in coordinating state law and regulations in keeping with the new provisions under the rule. You will need to pay attention to each state in which you do business for such conflicts (e.g., the state of Washington has eliminated specific disclosure forms currently required upon the effective date of the rule).
The language regarding the consumer’s right to receive a copy of the appraisal is included in the Loan Estimate, and there is no requirement for this to be a separate disclosure. However, the separate Notice of Right to Copy of Appraisal disclosure still applies to those transactions in first lien position that are exempt from use of the Loan Estimate & Closing Disclosure. Regarding disclosure of the waiver of receipt of a copy of the appraisal, if elected to issue to a consumer it would be separate from this disclosure.
Yes, this separate initial disclosure was eliminated for all loans other than reverse mortgages upon the effective date of the rule (10/3/2015).
The Appraisal statement “may” be omitted if it does not apply. So, when it is not required it can remain and does not have to be removed, however, if desired, it may be removed if it does not apply.
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.