October 1, 2015 by Jeff Lowen
October 3 is the start date. The new “TRID” (Truth-In-Lending-Act Real Estate Settlement and Procedures Act, or TILA-RESPA Integrated Disclosure), provided by the Consumer Financial Protection Bureau (CFPB) will affect all real estate transactions. Here’s a quick at-a-glance look at how this affects you.
- These are new lending and settlement rules.
- Designed to simplify the process.
- Remember the “Good Faith Estimate?” It’s gone! TRID replaces it.
- Loan estimates MUST be given to consumers within 3 days of loan application.
- TRID replaces the HUD-1 Settlement Statement.
- Closing Disclosure MUST be received within 3 days of settlement.
- Provides more clear and concise details to consumers.
In the early going, consumers might expect to see the mortgage process lengthened a little beyond the new time frame, perhaps approximately 45 days from the time you get a contract accepted until closing. As this new disclosure rule is implemented, expect longer time periods on purchase agreements.
- As a buyer, closing quickly might be a challenge and these time frames should be carefully planned for.
- As a seller, this could mean an additional mortgage payment, taxes, insurance, interest and maintenance until closing.
- This may affect Appraisers, Investors, Landlords, Renters and the entire process until we, as professionals can settle into a ‘groove.’
Real Estate Professionals across the country should ensure that they are using updated purchase contracts that reflect the new mortgage disclosure rules. We’ve all had plenty time to review these disclosures to explain, present and put into practice so that consumers are well informed and not blindsided by any surprises.
For any questions about the new disclosures and regulations regarding your particular situation, just ask. I’ll be happy to help!
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