New TRID requirements

October is here! 

October always means – leaves are changing, warm drinks abound, and Halloween is coming (scary movies, costumes, and candy!).  It’s a fun month that usually brings great weather.

This year – we are seeing a big change coming to all levels of real estate.  TRID requirements are rolling out.  It is the last of the federally mandated changes rolling out because of the crash (Dodd- Frank Wall Street Reform and Consumer Protection Act).  This will affect escrow, lenders, and real estate agents – but ultimately buyers and sellers.

Here’s some of the changes as I understand them.  How they play out will varry depending on your agents involved on all levels.

1) This will affect loan apps taken after today.  So if you are currently in a transaction it should not affect you.

2) Standardized Loan Estimate and Closing Disclosure forms.

3) Closing Disclosures to be signed 3 days before closing.

What does this mean for the buyer and seller?

1) If you are looking at buying or selling in the near future: talk with me!  There are things to be aware of and educated about so you can move through this transititon seamlessly!

2)The new forms are CLEAR!  This is a very good thing.  It will be easy to see what you are signing up for (loan) and what your terms are.  It will also make shopping around and comparing lenders easier due to the standardized forms.

3)With the closing disclosures to be signed 3 days before closing there will be an extension to the amount of time a standard loan can close.  We will probably be seeing more 45 day closes.  If there are changes after the closing disclosures are signed they will need to be RE disclosed and another 3 day waiting period.  The intent is to protect the consumer and require lenders and closing officers (escrow) to be VERY accurate.  Change of APR by more than 1/8%, adding a prepay, or a change in loan program will all REQUIRE a redisclose and another 3 day waiting period.

As with any change there will be bumps.  Expect some delays as all of us helping you through your transaction figure out the new regulations.  In the long run this will be a good thing for the industry.

Please don’t hesitate to ask if you have questions about this or any other real estate need.  I am here to help!