Cx10455 is provided pursuant to the provisions of D.C. Mun. Regs. tit. 26-C, §§ 1117.4, 1117.5, & 1117.6. Under Ibid. § 1117.5(e), a lock-in agreement is required to include “a statement that any terms not locked-in by the lock-in agreement are subject to change until the mortgage loan is closed at settlement.”
In 2015, due to the implementation of TRID 1.0 and the fact that the “closing costs expiration” date and time on the Loan Estimate (“LE”) may conflict with the language then currently printing on Cx10455, we modified the latter so that it states that any terms not locked-in by the lock-in agreement were subject to change based on the same date and time as on the former (for details, see https://compliance.docutech.com/2015/07/22/document-changes-dc-lock-in-agreement-cx10455-2/).
Under TRID 2.0, the “closing costs expiration” date and time on the LE is left blank on any revised LE, per the following Official Staff Comment:
“Once the consumer indicates an intent to proceed within the time specified by the creditor under § 1026.37(a)(13)(ii), the date and time at which estimated closing costs expire are left blank on any subsequent revised disclosures. The creditor may extend the period of availability to expire beyond the time disclosed under § 1026.37(a)(13)(ii). If the consumer indicates an intent to proceed within that longer time period, the date and time at which estimated closing costs expire are left blank on subsequent revised disclosures, if any. See comment 19(e)(3)(iv)-5.” (12 CFR Pt. 1026, Supp. I, Paragraph 37[a] – 4; 82 FR 37781 )
Because lock-in agreements are typically provided and executed subsequent to the initial LE, the conflict under TRID 1.0 will no longer exist. We will, therefore, be reverting back to the prior language which was used on Cx10455, which states the following:
“Any terms not locked-in by the Lock-In Agreement are subject to change until the loan is closed at settlement.”
We will also be modifying the current field used to print a percentage number after “Index:” under the “Adjustable Rate Terms” section to print the name and description of the index, using FI 2278 “ARM Index”.
These changes will take effect on May 30, 2018. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
DRs 262843, 262626