The new Integrated Disclosure rules were effective on October 3, 2015. Many lenders are scrambling trying to master the details of the new disclosures.
Most construction loans were exempt from the old disclosure requirements; however, these loans will now be covered by the new rules and are significantly impacted.
The CFPB provided few details regarding completion of the Loan Estimate and the Closing Disclosures for these loans. The regulation does not contain sample forms for construction loans and the Commentary only mentions construction loans a couple of times and those references provide little guidance for completing the forms.
It has been reported that some LOS products cannot produce construction disclosures while others produce the disclosures for some construction loan options, but not for others.
Lenders need solutions.
This training manual will help your financial institution understand when and why construction loans are covered by the new integrated disclosure rules and how to complete the loan estimate and closing disclosure for construction loans.