Last Updated on September 1, 2022
Anyone in the real estate or mortgage industry understands that new regulations called TRID (TILA/RESPA Integrated Disclosures) are coming. Maybe not as soon as we were expecting in August – but they will be here by October 3 of this year.
At Allen Tate Mortgage, we’re ready. But what does TRID mean for you as a buyer or seller in the fall real estate market?
If you have previously bought or sold a home, you’ll see two main changes: forms and closing deadlines.
Forms. The Truth-in-Lending Statement and Good Faith Estimate will be replaced by a new Loan Estimate. The Final Truth-in-Lending Statement and HUD-1 documents will be replaced by the Closing Disclosure.
These forms have been changed to provide the buyer with a clearer picture of the costs involved with mortgage financing, and to give the buyer more time to review and accept these terms. These changes originate from the CFPB (Consumer Financial Protection Bureau) as part of the Dodd-Frank Act.
Deadlines. What is most important is the impact on the time it may take to schedule a closing under these new rules. Buyers must receive and acknowledge their Closing Disclosure at least 3 business days prior to the closing. This will require more coordination and communication between agents, closing attorneys and lenders to ensure this takes place.
After 3-6 months, the new deadlines will become “business as usual,” but any buyers or sellers entering into contracts after October 3 will be among the first to work under these new guidelines. It’s very important to make sure you are working with an informed team of agents, closing attorneys and lenders in order for the process to go as smoothly as possible.
Our Allen Tate Mortgage Consultants and real estate agents have been in training for these changes since June and can help guide you through this process. In August, look for more information here on what you can do as a buyer to prepare for these upcoming TRID changes.
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