[mfitzpatrick]

I have a TRID question that needs some clarification. In a case where the customer is only applying for construction only financing, the bank will provide an LE for the construction phase and also provide an LE for permanent because we may provide that financing later. If the borrower never applies for permanent financing is the bank still required to provide a CD for permanent financing? If so, I assume this is provided at the same time the construction CD is delivered.

My goal is to primarily offer const/perm loans with one closing, but I need to wrap my head around the scenario where the customer doesn’t want permanent financing, but the bank doesn’t have a takeout commitment.

[rcooper]

You would not provide a CD for the permanent phase unless you provide the permanent phase financing.

[Author]

Posts