A fact sheet on title insurance disclosures and updated frequently asked questions (FAQs) – such as the requirement to include seller information in some instances – for required disclosures about home mortgages were issued Tuesday by the federal consumer financial protection agency.
The fact sheet and FAQs on Truth in Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) integrated disclosures – commonly referred to as TRID – were both published as guidance, the Consumer Financial Protection Bureau (CFPB) said.
The fact sheet generally focuses on how to disclose title insurance on the Loan Estimate and Closing Disclosure, including when a negative number for the owner’s title insurance cost disclosure is appropriate. Among other things, the fact sheet outlines: disclosures on loan estimates and closing; disclosure of simultaneous title insurance on the loan estimate and closing disclosure; differences between state disclosures and TRID disclosure requirements for simultaneous rates; and simultaneous issuance if the seller agrees to pay the amount of the full owner’s title insurance premium.
The FAQs touch on a broad range of issues related to TRID compliance. Among them: total of payments disclosure, using the optional signature line on the loan estimate and closing disclosure, and the requirement to include seller information on the consumer’s disclosures if providing separate closing disclosures.