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CFPB published a new fact sheet Tuesday on how construction loans are affected by Truth in Lending Act/Real Estate Settlement Procedures Act integrated disclosures (TRID) rules.

The fact sheet notes that construction loans are:

• covered by the "know before your owe" mortgage disclosures unless the loans are open-end transactions or are for a commercial purpose, and
• covered by existing provisions under Regulation Z, including the Loan Estimate and Closing Disclosure rule.

The fact sheet also covers how to disclose a construction loan with permanent financing as either one transaction or more than one transaction.

In December, CFPB Director Richard Cordray reiterated in a letter to the Mortgage Bankers Association that the bureau will consider lenders' good-faith efforts toward compliance with TRID and clarified some concerns over cure provisions for violations to the rule. Cordray and NCUA Chairman Debbie Matz had also made similar statements in the past.

NAFCU has repeatedly asked the bureau to consider credit unions' good-faith efforts toward compliance with TRID and supports H.R. 3192, the "Homebuyers Assistance Act," which would establish a hold-harmless period on enforcement under the rule until Feb. 1. This measure passed the House in October.