What you need to know about the TILA-RESPA Integrated Disclosures (TRID)
October 2nd, 2015
On October 3, the TILA-RESPA Integrated Disclosure (TRID) took affect. TRID is complicated, but what you need to know is that mortgage lending forms used to be difficult for the homebuyer to understand. That’s why the Consumer Financial Protection Bureau (CFPB) developed new, more streamlined documents.
What is TRID?
- New disclosures the lender must provide consumers when they apply for a mortgage
- The initial disclosure will be known as the Loan Estimate, replacing the GFE and Early TIL
- The disclosure for settlement will be known as the Closing Disclosure, replacing the Final TIL and HUD-1
Why is TRID important to you?
- The lender must provide the Closing Disclosure to the borrower three business days prior to closing. Certain changes to the Closing Disclosure may trigger an additional three business days and affect your closing date. Read more here.
How can you help?
- Contracts must include ALL pages, additions, addendums, change orders and price additions/concessions
- Determine closing agent EARLY in process
- Determine homeowner’s and flood insurance providers EARLY in process
- Must be sure a borrower provides ALL lender requested loan documents, forms and information in a TIMELY manner. Borrower delay will impact closing date. (See: 8 critical documents to for pre-approved)
- Representing the seller? Be sure seller’s attorney does not delay in:
- Unreleased liens
- Estate issues
- Title issues
- Encourage 45 day closing dates vs. 30 days
- Order & coordinate home inspection ASAP. Appraisals are not ordered until receipt of a clear home inspection
- Assure repairs and punch list items are done before closing. It’s strongly recommended to add a seven-day requirement in PICRA. Seller must be educated on TRID timelines
PLEASE NOTE: Last minute/same day closings are a thing of the past!