TRID 2.0 and the Disappearance of the Black Hole

[...]a written list of service providers ("WLP") must be provided when a consumer is permitted to shop for a settlement service.8 Examples of services a consumer can shop for may include title insurance, pest inspections, and property surveys.9 Examples of services a consumer cannot shop for may include property appraisals, credit reports, flood monitoring, and tax status research.10 TRID 2.0 amended the Official Interpretations to Regulation Z to expressly state that creditors who use Form H-27 have complied with the requirement to provide a WLP.11 The Official Interpretations now also clarify that changes, such as deleting the estimated fee amounts column, may be made to Form H-27 without the creditor losing safe harbor protections as long as the changes do not affect the substance, clarity, or meaningful sequence of the form.12 In addition, the CFPB noted that "typographical errors regarding a settlement service ... do not subject the charges for such service to the zero percent tolerance13 category when determining good faith, unless the error interferes with the consumer's ability to shop. TRID APPLIES TO COOPERATIVE APARTMENTS TRID 2.0 addressed an area of substantial confusion by expanding the scope of the TRID Rule to apply to loans that are secured by cooperative apartments, even if they are not considered real property under state law.33 INSTRUCTIONS FOR DISCLOSING PRINCIPAL REDUCTIONS The amendments include detailed instructions for disclosing principal reductions and permit creditors to disclose a principal reduction instead of general lender credits when providing a tolerance cure.34 SELLER CREDITS FOR SPECIFIC CHARGES TRID 2.0 clarifies that seller credits for specific charges may either be disclosed under the seller credits line in the calculating cash to close table or reflected in the amounts disclosed for those specific items under Loan Costs and Other Costs.35 For example, if a seller agrees to pay half of a required pest inspection fee of $100, the fee can be disclosed as a $50 fee or a $100 fee with a seller credit of $50.36 OTHER AMENDMENTS TO THE TRID RULE TRID 2.0 contains dozens of other important amendments and clarifications.37 These include: the partial exemption for certain down payment assistance programs;38 sharing disclosures with real estate agents and other parties;39 post-consummation escrow cancellation and partial payment disclosures;40 the expiration date on the Loan Estimate;41 the Calculating Cash to Close table;42 s