TRID Is Coming: Are You Prepared?
Earlier this year, the Consumer Financial Protection Bureau (CFBP) announced it would be issuing new rules that will have a significant impact on the way closings are conducted. This involves the introduction of a new closing documentation process that combines the Truth in Lending and Real Estate Settlement Procedures Act.
This new closing documentation process, known as the TILA/RESPA Integrated Disclosure (TRID), will replace current lending documents, including the Good Faith Estimate, HUD 1 Settlement Statement and Truth in Lending.
As your trusted mortgage resource, we wanted to keep you informed throughout the process and provide you with important updates related to the implementation of TRID and how it will impact real estate transactions once in effect.
When will TRID go into effect?
Originally set to take effect August 2015, the CFPB has postponed the effective start date of TRID, which will now go into effect on October 1, 2015.
How will TRID impact the mortgage process?
Under TRID, mortgage lenders are required to provide buyers with closing documentation at least three days prior to their scheduled closing date, meaning the title company must also have the documents required for closing well ahead of the scheduled closing date.
This is because the rules and regulations associated with TRID require a three-day waiting period after issuing the closing disclosure before consumers can proceed with closing. Should any changes be made to closing documentation, lenders are required to reissue the disclosure to buyers and another three-day waiting period will be issued.
How does this affect you?
As the mortgage industry continues to introduce new regulations and lending standards, it has become increasingly important to partner with a lender who has the expertise and resources needed to implement these new requirements into their existing business processes in an efficient manner.
As experts in the field, we are well prepared to meet this new requirement and uphold our promise to ensure the timely closing of consumers’ loans on the day, the time and the price we guarantee.
If you have any questions, or would like additional information pertaining to TRID, please send us a message. We would be happy to put you in touch with one of our mortgage experts.
