WHY THE CHANGE?
The new TILA-RESPA Integrated Disclosure rule (TRID) rules and forms took effect October 3, 2015. You may have heard of the new rules, however, I’ve taken some time to clarify a few questions and ways that the new regulations will affect both buyer and lender. This new rule is meant to simplify and clarify. The TRID updates are an attempt to improve and correct possible flaws with the current regulations. Starkey Mortgage can assist with this process which will make for a smooth buying process.
THE NEW RULES
To begin with, there are two new forms that are much more user-friendly than their predecessors. They are the Loan Estimate and Closing Disclosure forms, which are replacing four different forms from two government agencies. The form layouts are easier to understand, and you might find that they simply look better. They also make comparison shopping loans easier on the borrower.
Another change is the timing of the closing and the delivery date requirements. Borrowers will now be able to review the Closing Disclosure for at least three days prior to closing. In addition, the title company will need to send their fees to the lender well enough in advance of closing to allow the lender to meet the new delivery date requirements. The seller will receive this Closing Disclosure at or before closing. This prevents the deal from changing at the last minute, while giving buyers more time to review the paperwork before reaching the settlement table.
HOW IT AFFECTS LENDERS
Lenders will likely have a lengthier process to undergo than in prior years. They are now responsible for the Closing Disclosure instead of the title company. Internally, they will need to allow for more time in order to have the required forms submitted on deadline. While the new regulations lay more responsibilities on the lender, they benefit all involved in the long run.
HOW IT AFFECTS YOU
The National Association of Realtors is also recommending that Realtors add 15 days to the normal closing time frame to account for these changes. As a buyer, your quoted closing time may increase, but you will likely benefit from this extra time.
Any inspections or repairs will need to be handled earlier in the process than before the new updates. The goal here is to reduce any last-minute complications. So while the burden is increased on the lender, you the buyer can greatly benefit from the new regulations.
HOW I CAN HELP
Our team of professionals can help you navigate the TRID maze and come out a winner on the other side. Though the process has changed, our concierge customer service has not. Our experts understand the ins and outs of these new rules, and want to help you feel confident in your home purchase. For more FAQs, please visit: http://www.realtor.org/law-and-ethics/faqs-tila/respa-integrated-disclosure-trid-rule.