Reg Z – How should the Loan Type field be completed on the Loan Estimate?

Compliance > Regulation Z - TILA / TRID Specific > Loan Estimates
Q:  How should the Loan Type field be completed on the Loan Estimate?
 
A:  Regulation Z has very technical requirements for the completion of the Loan Type field.  While creditors should review regulatory conditions and commentary, a general description of the requirement is as follows: 
 
  • If the loan is not guaranteed or insured by a Federal or State government agency, the type shall be disclosed as “Conventional.”
  • If the loan is insured by the Federal Housing Administration, the type shall be disclosed as “FHA.”
  • If the loan is guaranteed by the U.S. Department of Veterans Affairs, the type shall be disclosed as “VA.”
  • For federally-insured or guaranteed loans other that FHA or VA, and for loans insured or guaranteed by a State agency, the type shall be disclosed as “Other,” and provide a brief description of the loan type.
 
 
ADDITIONAL INFORMATION – The regulatory citation for addressing this topic can be found in 12 CFR 1026.37(a).  This was also discussed in the CFPB's October 1, 2014 webinar - Completing the Loan Estimate, which may be found here - http://www.consumerfinance.gov/regulatory-implementation/tila-respa/
 

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