VA Addresses TRID and IRRRL Issues

The Department of Veterans Affairs (VA) has provided information regarding documentation of allowable fees and charges on the TILA-RESPA Integrated Disclosure (TRID) Closing Disclosure (CD). VA no longer accepts a separate itemized list of credits and charges, so lenders must document all allowable fees and charges assessed against the borrower in accordance with VA regulations, as well as any lender and seller credits, on the CD. The requirements are explained in detail in VA Circular 26-17-11, and will apply to all VA loan applications dated on or after July 2, 2017.

The Department of Veterans Affairs (VA) has also clarified its requirements regarding the completion of VA Form 26-8923, Interest Rate Reduction Refinancing Loan Worksheet. The clarifications are effective for all Interest Rate Reduction Refinance Loan (IRRRL) applications originated (initial Fannie Mae Form 1003 application date) on or after July 2, 2017. The clarifications are explained in detail in VA Circular 26-17-12.

The VA Circulars noted above can be found at the following VA website: http://www.benefits.va.gov/HOMELOANS/resources_circulars.asp