With its recent approval of a
trial construction loan disclosure template, the Consumer Financial Protection
Bureau (CFPB) took the first step for the bureau’s Trial Disclosure Program toward
establishing distinct requirements for construction loans, as opposed to other
real estate loan types.
Through ongoing testing
efforts, the bureau hopes the program will help to identify and define
parameters to guide compliance personnel when interpreting and applying the
CFPB’s TILA-RESPA Integrated Disclosures (TRID) rule, also known as “Know
Before You Owe” requirements, to construction loan originations.