Construction Loans: TRID – ON-DEMAND WEBINARS

Date Recorded: August 10, 2020

Presenter: Anetria Cohen, Vice President and Senior Consultant, FORVIS

A two hour webinar focusing on how construction and construction-permanent loans are disclosed on the Loan Estimate and Closing Disclosure.

Given the oddity of the structure of construction loans, how they are disclosed on the Loan Estimate and Closing Disclosure can be difficult as the borrower’s payment and other terms may be unknown at closing. In addition, although the Consumer Financial Protection Bureau (CFPB) issued certain clarifications, which helped, there remains some disclosures that are still unclear.

This webinar will review how construction-only and construction-permanent loans are disclosed on the LE and CD, and mention how each type of transaction presents its own issues for disclosure.

HERE IS WHAT YOU WILL LEARN:

• Disclosures on the Loan Estimate/Closing Disclosures that present unique issues for construction and construction-permanent loans, including:
  • Sale Price when there is no seller
  • Loan Term
  • Purpose
  • Product
  • Principal and Interest Payment, and whether/when to disclose an Increase in Periodic Payment
  • Projected Payments
  • Loan Costs – Construction loan inspection and handling fees and the use of addenda for costs paid after closing
  • Construction reserves/holdback – Where is it???
  • AP Table
  • Calculating Cash to Close examples