*CONFIDENTIAL*
Duplication and/or distribution of this document without prior
written approval from BofI is strictly prohibited.
1
Section
TRID Overview:
Loan Estimate (LE):
Closing Disclosure (CD):
Summary:
Contents
Page Number
• What is TRID?
3
• Definition of an Application
4
• Timing Requirements
6
• Business Day Definition
7
• FAQ’s
8
• Evidence of receipt of LE
9
• Submission Requirements
10
• Change of Circumstance
11
• Timing
13
• Re-disclosure
14
• Who must receive CD?
15
• Proof of Receipt
16
• Calendar
17
• FAQ’s
18
• Seller signed CD
19
• Tolerance Categories
20
• Summary
21
2
 TRID combines four (4) disclosures that are required under TILA and RESPA into two
forms.
 The initial TIL and GFE will be replaced by the Loan Estimate (LE)
 The final TIL and HUD will be replaced by the Closing Disclosure (CD)
 The rule is under Reg. Z and goes into effect on October 3, 2015.
Final
TIL
Initial
TIL
GFE
Loan Estimate (LE)
HUD
Closing Disclosure (CD)
3
 Once a lender receives the
6 pieces of information, an
application has been
triggered.

No more requiring a 7th
item before considering
the loan as an application.
P
•Property Address
E
•Estimated Value
N
•Name
C
•Credit
•(social security number to pull credit)
I
•Income
L
•Loan amount
 A Loan Estimate (LE) must be provided to the consumer within 3 business days of
receiving an application.
 Cannot charge a consumer, other than a bona fide credit report fee, until they have
received the LE and indicated an intent to proceed.
 Note: BofI will not accept an Loan Estimate dated prior to the application date.
4
5
 Initial LE must be delivered within 3 specific
business days of the application date (Does
not include Saturday if Lender is not open for
business)
 The Initial LE must be provided to the
borrower no later than 7 general business
days before consummation (calendar days
except Sundays and Federal Holidays)
 All Change of Circumstance Loan Estimates
must be provided within 3 business days of
the COC event (waiting periods apply if APR
increases by more than 0.125%)
 Note: if an application is denied or withdrawn within 3 business days, the LE is
not required and the application under the same terms cannot be reactivated.
6
Specific Business Day
For purposes of providing the Loan Estimate, or any revised Loan Estimate, a business day
is a day on which the creditor’s offices are open to the public for carrying out
substantially all of its business functions. (Specific Business Day – used for the purposes
of determining the last day the LE must be delivered)
General Business Day
For all other purposes, business day means all calendar days except Sundays and legal
public holidays recognized by the Federal Reserve. (General Business Day - used for
counting all applicable wait periods)
Mailbox rule
It is presumed a borrower receives a disclosure on 3rd general business day after it is
delivered or placed in the mail. The mailbox rule is used when there is no proof the borrower
received the disclosure.
7
Who must receive a copy of the Loan Estimate?
 On rescindable transactions, the LE must be given to each consumer who has
the right to rescind under TILA. NOTE: Non-borrowing spouses/individuals on
Title are required to receive the Loan Estimate – proof of receipt will be required.
(Section 1026.17(d) Regulation Z)
 On non-rescindable transactions, the LE may be provided to any consumer with
primary liability on the obligation.
Does BOFI require the loan estimate to be executed by the borrower (s)?
 Yes, the loan estimate must be executed by the borrower(s).
Can the loan officer request any income or asset documentation prior to receipt of
the intent to proceed?
 No the loan officer cannot request any documentation until the borrower has
given their intent to proceed.
8
Evidence of consumer receipt through email
acknowledgement from consumer.
Evidence of electronic receipt – read receipt.
Signing for a UPS/FedEx package
 NOTE: We recommend all Correspondents engage an e-sign/e-delivery vendor and
implement the necessary procedures for documenting proof of receipt of the Loan
Estimate and Closing Disclosure.
9
 Attestation: Seller must complete the online TRID Attestation on the BofI
Lending Partners website for each loan that is submitted. (Found in the “Submit
My Loan” screen) “By submitting this application I certify I have complied with
BofI submission requirements and the changes under the TRID rules? Y, N or
N/A?
 Evidence of Receipt of Loan Estimate by required parties (See page 8 for
information on who must receive a copy of the LE)
 A detailed fee sheet – must match your Loan Estimate
 Intent to proceed
 Loan applications dated on or after 10/3/2015 must have initial disclosures,
including the Loan Estimate (LE) and “Your Home Toolkit” (Purchases only)
dated within 3 days of the application date (In compliance with RESPA)
 Settlement Service Provider List must be provided and list any affiliated
companies.
 1003 Must be dated and signed by Loan Officer and reflect NMLS numbers.
10
 An extraordinary event beyond the control of any interested party or other
unexpected event specific to the borrower or transaction;
 Information specific to the borrower or transaction that the creditor relied upon when
providing the LE and that was inaccurate or changed after the disclosures were
provided;
 New information specific to the borrower or transaction that the creditor did not rely
on when providing the LE
Per CFPB:
 “Creditors may only use revised or corrected Loan Estimates when specific
requirements are met. Creditors generally may not issue revisions to Loan
Estimates because they later discover technical errors, miscalculations, or
underestimations of charges. Creditors are permitted to issue revised Loan
Estimates only in certain situations such as when changed circumstances
result in increased charged.”
Note: The last revised LE must be issued at least 1 business day (includes
Saturday) prior to issuing the CD.
.
11
12
 Must be provided to the consumer at least 3 business days before consummation.
 Once a CD is provided to the consumer, a revised LE cannot be issued.
 Must be delivered at least 3 general business days prior to consummation (calendar
days except Sundays and Federal Holidays). Consummation is the date the
consumer signs the note and other loan documents.
 If a revised CD must be provided, an additional 3 business day waiting period only
applies under certain circumstances - see page 14 for guidance.
 A CD may not be delivered the same day as an LE is issued.
13
Pre-consummation:
A new 3 business day (Includes Saturday) waiting period applies when there are:
 Changes to the loan’s APR; or (increase by more than 0.125%)
 Changes to the loan product; or
 The addition of a prepayment penalty
If other types of changes occur, the borrower must receive a corrected CD at or
before consummation.
Post-consummation event(s) that would require a new CD
Examples:
 A recording fee paid by the borrower is different from the amount that was
disclosed on the CD (provide within 30 calendar days).
 Non-numerical clerical errors and refunds for tolerance violations (provide
within 60 calendar days of consummation). Clerical error = doesn’t affect
the numerical disclosure and does not affect the timing delivery.
 Incorrect settlement service provider listed is OK.
 Wrong property address is NOT OK (affects the delivery requirement and
is not considered clerical).
14
 In rescindable transactions, we require proof that each borrower (including
non-borrowing spouses/individuals) have received the CD. The clock starts
counting after the last borrower has provided proof of receipt.
 In non-rescindable transactions, we require proof that one of the consumers
with primary liability on the obligation has received and acknowledged receipt.
 Sending the LE is not sufficient proof of receipt – you are required to document
the borrower(s) received the CD.
15
How should Lenders document proof of receipt of the CD?
Evidence of consumer receipt through email acknowledgement.
Evidence of electronic receipt – read receipt.
Signing for a UPS/FedEx package.
Electronic delivery that complies with ESIGN + three business days.
Mailbox rule : Mailing date + three business days.
Mailbox rule will be used if the consumers eConsent was not received prior
to delivering the CD.
16
17
Does the CD have to be executed by the borrower(s)?
 Yes, BofI requires the CD to be executed. The “Final” CD must be signed with
closing documents.
What if the If the borrower does not acknowledge receipt of the CD?
 If the borrower does not acknowledge receipt of the CD there will be a 6 day wait
before borrower can sign loan docs. (3 day mail, and 3 day wait)
Can the borrower waive the 3-day waiting period?
 No, BofI will NOT accept Hardship Letters in lieu of required TRID waiting periods
Who should prepare the CD?
 The Lender or the Closing Agent can prepare the CD, but the lender is ultimately
responsible.
 Texas loans require a CD to be prepared by an attorney.
Can a CD be issued instead of an LE if the scheduled close date is less than 4
business days from rate lock date?
 This should be an exception not the rule. BofI prefers the borrower to receive a
revised Loan Estimate for a rate lock.
18
Purchase transactions: the settlement agent is required to provide the seller with the
CD reflecting the actual terms of the seller’s transaction.
 The settlement agent may provide the seller with a copy of the CD that was
provided to the buyer if it also contains information relating to the seller’s
transaction.
 The settlement agent may provide a separate disclosure to the seller, including
only the information applicable to the seller’s transaction from the CD.
However, if the seller’s disclosure is provided in a separate document, the
settlement agent has to provide the creditor with a copy of the disclosure
provided to the seller.
Does the Seller signed CD need to be signed?
 Yes, the seller signed CD will need to be executed by the sellers.
19
0% Tolerance
10% Tolerance
No Tolerance
Paid to creditor
Required 3rd party
services the borrower
CAN shop for but DID
NOT shop for
Prepaid Interest
Paid to broker
Recording fees
Property Insurance
Premiums
Paid to affiliate
Amounts placed into
escrow
Required 3rd party
services the borrower
CANNOT shop for
Required 3rd party
services the borrower
CAN shop for and DID
shop for
Transfer Taxes
Non-required 3rd party
services
20
 Fully understanding the changes required may involve a review of your existing
business processes, as well as the hardware and software that you or other
business partners use.
 You will find the TILA-RESPA rule on the Bureau’s website at
http://www.consumerfinance.gov/regulatory-implementation/tila-respa/
 Useful resources related to mortgage rule implementation are also available at
http://www.consumerfinance.gov/regulatory-implementation/.
 The information provided in this presentation is limited to Bofi’ s policies with respect
to the TILA-RESPA integrated disclosure rule. This is not to be considered regulatory
compliant and/or legal advice and is subject to change without notice. You are
encouraged to reach out to your compliance/legal department for guidance.
21