TRID requires “the amount of any fee the creditor imposes on the consumer for not establishing an escrow account in connection with the transaction” (12 C.F.R. § 1026.38[l][i][B]) to be disclosed in the “No Escrow” table on page 4 of the Closing Disclosure. Currently, when no escrow waiver fee is charged, our copy of the CD displays “$0.00” to illustrate both that: (i) an escrow account will not be established; and (ii) that no fee will be charged in connection therewith.
The CFPB has provided some informal guidance on how the “Escrow Waiver Fee” row should be disclosed when no waiver fee is charged. To wit:
“With respect to questions about how to disclose the Escrow Waiver Fee as required by § 1026.38(l)(7)(i)(B)(2) when the creditor does not impose a fee on the consumer for not establishing an escrow account in connection with the mortgage transaction, there would be no amount to disclose, and the disclosure would be left blank, as illustrated by form H-25 of appendix H to Regulation Z . . .” (78 FR 80035 )
While disclosing “$0.00” or leaving the “Escrow Waiver Fee” row blank accomplishes the same purposes, we will be modifying our copy of the CD to conform with the latter method, since there is specific guidance from the CFPB which supports it.
This change will take effect on March 24, 2020. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.