Final TRID Rule Issued Fixing the "Black Hole"

As you may be aware, the CFPB has released the final rule which eliminated the “Black Hole” as of June 1, 2018.

This allows lenders to generate redisclosed CD’s to reset fee baselines with a valid Change in Circumstance. There is no application date qualifier.

Key highlights include:

  • Fee changes that occur after the ICD has been sent will no longer be tied to the loan closing within a certain number of days
  • The baseline of a given fee can be reset provided a new CD is sent to the borrower within 3 days of the Changed Circumstance
  • Sending a new CD to reset the baseline of a fee does NOT trigger a new 3 daywait
  • A new 3 day wait is only triggered for the same circumstances that exist today
    • APR becomes inaccurate:
      • Increases by more than .125 (.25 on ARMs) for any reason
    • Loan product is changed – This applies to any changes to the product listed on page 1 of the CD
      • Prepayment penalty is added