[JGo9]

If memory serves me correctly, during the pre-TRID times if you made an adjustment to a loan that would change the APR you would have to residisclose the adjusted APR via a final TIL disclosure. Now that this disclosure has been combined with others to make up the Closing Disclosure (CD), does that mean if the APR changes you have to disclose the adjusted APR via a new CD?

I know TRID does not specifically address having to disclose a new CD, but if we have to disclose an updated APR (per Reg Z), do we not still have to, in turn, disclose via a CD since that’s where that information is now housed?

Thank you.

[rcooper]

Hey JGo9! Maybe I’ve misunderstood your questions…
Here’s the pre-TRID Reg Z language for mortgage loans subject to RESPA (now only applicable to reverse mortgage transactions subject to RESPA):
1026.39(a)(2)(ii) “If the annual percentage rate disclosed under paragraph (a)(1)(i) of this section becomes inaccurate, as defined in §1026.22, the creditor shall provide corrected disclosures with all changed terms. The consumer must receive the corrected disclosures no later than three business days before consummation. If the corrected disclosures are mailed to the consumer or delivered to the consumer by means other than delivery in person, the consumer is deemed to have received the corrected disclosures three business days after they are mailed or delivered.”

The language for this is now in 1026.19(f)(2) related to re-disclosure of the CD:

(2) Subsequent changes.

(i) Changes before consummation not requiring a new waiting period. Except as provided in paragraph (f)(2)(ii), if the disclosures provided under paragraph (f)(1)(i) of this section become inaccurate before consummation, the creditor shall provide corrected disclosures reflecting any changed terms to the consumer so that the consumer receives the corrected disclosures at or before consummation. Notwithstanding the requirement to provide corrected disclosures at or before consummation, the creditor shall permit the consumer to inspect the disclosures provided under this paragraph, completed to set forth those items that are known to the creditor at the time of inspection, during the business day immediately preceding consummation, but the creditor may omit from inspection items related only to the seller’s transaction.

(ii) Changes before consummation requiring a new waiting period. If one of the following disclosures provided under paragraph (f)(1)(i) of this section becomes inaccurate in the following manner before consummation, the creditor shall ensure that the consumer receives corrected disclosures containing all changed terms in accordance with the requirements of paragraph (f)(1)(ii)(A) of this section:

(A) The annual percentage rate disclosed under § 1026.38(o)(4) becomes inaccurate, as defined in § 1026.22.

(B) The loan product is changed, causing the information disclosed under § 1026.38(a)(5)(iii) to become inaccurate.

(C) A prepayment penalty is added, causing the statement regarding a prepayment penalty required under § 1026.38(b) to become inaccurate.

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