AFR TRID FAQs – Part 6

January 7, 2016

Here are some commonly asked questions with the TRID implementation. For more information and for any questions you may have on TRID, please contact us at

Q: Is AFR going to send the CD to be signed to the Title Co prior to sending it to the Client?

A: We will send the CD to the Title Co at the same time it is sent to the Client.

Q: Is a “wet signature” required on the CD?

A: If the borrower accepts eConsent, a “wet” signature will not be required.

Q: Does AFR need to review the Closing Disclosure (CD)?

A: Yes, if AFR issued the Closing Disclosure (CD), we will provide the Settlement Agent the Final Approval.

Q: How will AFR request the Title Invoice?

A: AFR will request the Title Invoice through Encompass.

Q: Is there a finance charge change limitation on the Closing Disclosure (CD)?

A: No.

Q: Is there a change to the file after AFR issues the CD; does the file need to be resubmitted?

A: No; if the APR falls out of tolerance or there is a loan program change such as changing from ARM to fixed or a pre-payment penalty is added, AFR will re-disclose the CD.

Q: Once a loan is Cleared to Close, what are the steps to take before we can schedule, doc out and sign?

A: AFR will not issue a Clear-to-Close until we have a Final CD. Once the file is Clear-to-Close, the Closing Scheduler will review the disclosure dates and you will schedule your closing based on the first available date after the adequate waiting period has passed.

Q: What is the timing requirement for the CD?

A: The borrower must receive the CD no later than 3 business days before consummation. This applies to both purchase and refinance transactions. For example, if the loan is scheduled to close/sign on Thursday, the borrower must receive the CD at least by the Monday before the closing/signing.

Note: Lenders are prohibited from providing a revised LE on or after the date on which the lender provides the CD.

Q: What is the definition of consummation?

A: Consummation means the time that a consumer becomes contractually obligated on a credit transaction, which is the date the Note is signed.

Q: How are business days defined for the CD?

A: For the CD, specific business days are defined as all calendar days except Sundays and legal public holidays: New Year’s Day, Martin Luther King Birthday, Washington Birthday, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day.

Q: If not delivered in person, when is the CD considered as received by the borrower?

A: When the CD is not delivered in person, the borrower is considered to have received the CD 3 specific business days after it is delivered electronically or placed in the mail (unless evidence is provided demonstrating earlier receipt).

Important Note: If the CD is delivered electronically via a document vendor that is compliant with the E-Sign Act (e.g. IDS and DocMagic) and the borrower does not access the CD, then it’s not considered as received. The document vendor is required to update the delivery date to the date it is placed in the mail due to not being accessed electronically.

Q: Who prepares the CD – the lender or the settlement agent?

A: The lender can contract with the settlement agent to provide the CD on the lender’s behalf; however the lender is still legally responsible for the accuracy as well as any errors or defects. AFR will prepare the CD on all Wholesale transactions.

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