TRID: Placement of Costs and Credits and Their Impact on Disclosures

Date Recorded: May 29, 2025
Presenter: Mark Burnside, Director Forvis Mazars, LLP

A two-hour webinar on pages 2 and 3 of the LE and CD: The proper inclusion of fees and credits, whether paid by the borrower, seller, lender, or other third party, and how the Calculating Cash to Close table and Summaries of Transactions should be determined.

Although financial institutions may have become accustomed to the basic requirements of the Truth-in-Lending/RESPA integrated disclosure rules, you may still grapple with certain specific issues – one being when and how to include fees on the Loan Estimate and Closing Disclosure. For example: Does the creditor have to include property taxes and homeowner’s insurance on non-purchase loans?  When does the creditor have to include non-creditor fees, like Owner’s Title, on the Loan Estimate?  Do seller paid fees have to be included on the borrower’s Closing Disclosure?  What does the placement of the fees tell us about tolerance?  How do we show when the borrower has received gift money?

Also, what about credits? Unfortunately, the original TRID rule was contradictory and confusing, leading many in the industry to provide differing disclosures. In response, the Consumer Financial Protection Bureau issued frequently asked questions (FAQs) regarding TRID and, specifically, lender credits.  We will discuss the CFPB’s use of the words “absorb” versus “offset.”

This webinar will delve into the intricacies of these issues. We will discuss the importance of the inclusion of fees and credits in the Loan Costs, the Other Costs, the Calculating Cash to Close, and the Summaries of Transactions sections.  We also will discuss the differences between purchase and non-purchase transactions.  The materials will include a one-page chart regarding the placement of fees that may be helpful to participants.

HERE IS WHAT YOU WILL LEARN:

• Loan Estimate
  • Where to include creditor required fees and credits
  • Whether and when to include non-creditor fees
  • What fees are reflected in the Calculating Cash to Close table
• Closing Disclosure
  • Placement of creditor and non-creditor required fees and credits
  • Importance of service providers chosen by the borrower
  • Discussion of costs in the Calculating Cash to Close table
  • How to show costs paid by the lender, seller, and third parties
  • Difference of fees shown on page 2 versus costs shown on page 3 (Summaries of Transactions; Payoffs and Payments)