Bank of America Addresses TRID Questions

July 9, 2015

In its July newsletter to settlement agents, Bank of America answered additional questions it has received regarding the Consumer Financial Protection Bureau’s (CFPB) TILA-RESPA Integrated Disclosures (TRID) rule.

Bank of America is working toward CFPB’s proposed effective date of Oct 3, 2015.

One of the questions addressed is how settlement agents should handle charges for title insurance. State law and regulation in half of the country dictate that consumers must pay title insurance rates that are different than how the CFPB requires industry to inaccurately disclose these fees to the consumer.

Bank of America said title premium charges provided to Closing Insight “should align with the updated regulatory rules in order to ensure that the Closing Disclosure that is generated from those fees is in compliance.”

The lender added that ALTA’s model Settlement Statement (or other settlement statement) may be used to satisfy any state or local fee requirements. If a Settlement Statement is used, the total must match the Closing Disclosure.

Unless stated otherwise in the service level agreement, Bank of America said settlement agents must provide final settlement charges by the next general business day after a request is made.

Additionally, Bank of America said fees controlled by the real estate agents—such as pest, well, septic and home inspections—must be included on the Closing Disclosure. Any changes must be approved by Bank of America. Even if there is a change, a new three-day waiting period is only required if the APR increases more than 1/8%, the product changes or a prepayment penalty is added.

In the newsletter, Bank of America reminded settlement agents that it will require the use of Closing Insight for all applications subject to the TRID rules.

Contact ALTA at 202-296-3671 or