On 6/9/2020, the CFPB issued a new FAQ sheet on TRID and title insurance disclosures. The FAQ sheet, which runs nine pages long, outlines the difference between lender’s title insurance and owner’s title insurance and explains how each type of insurance applies to TRID. For example, the FAQ sheet discusses:
How each type of insurance must be included on the Loan Estimate (LE) and Closing Disclosure (CD);
How to disclose applicable insurance when there is simultaneous title insurance rate when both a lender’s and owner’s policy is purchased;
The difference between state disclosures and TRID disclosures for simultaneous rates;
How to disclose simultaneous issuance if the seller agrees to pay the full premium amount of owner’s title insurance; and
What to do with negative owner’s title insurance.
The FAQ sheet also provides a number of examples to assist financial institutions in understanding the disclosure of applicable insurance.
The TRID FAQ Sheet can be found here.