THE BASICS OF TRID

TilaRespaYLV-650

TILA / RESPA INTEGRATED DISCLOSURE

WHAT

Changes to the Good Faith Estimate and HUD-1 forms and closings processes are coming soon.

WHEN

The changes will be effective for transactions where a loan application is taken by a lender on or after August 1, 2015.

HOW

The Consumer Financial Protection Bureau (CFPB), an entity created by the Dodd-Frank Act, issued a new TILA final regulation that, among other things, created two new forms (each with many variations) and new 3 business day delivery requirements.

  • Loan Estimate – 3 business days after application
  • Closing Disclosure – 3 business days before Consummation

WHO WILL WILL ISSUE THE FORMS

  • Loan Estimate – Lender or Mortgage Lender
  • Closing Disclosure – Lender or Settlement Agent (Escrow), Lender may delegate responsibility to the Settlement Agent (Escrow).

IMPACT ON REAL ESTATE PROFESSIONALS

  • Closings may take longer because of the 3 business day review periods.
  • You’ll be seeing different forms for most transactions.
  • Your contact information and license number must appear on the Closing Disclosure form. (see page 5 of the Closing Disclosure Form)
  • Your clients may receive multiple Loan Estimates due to:
  • “Changed circumstances” – certain defined circumstances that cause the estimated charges to increase by more than the variance allowed under the Final Rule;
  • Multiple applications with different lenders;
  • or Multiple applications for different loan products with the same lender.
  • Your clients may receive multiple Closing Disclosures:
  • Some with a 3 day business day waiting period and some without; and
  • Some before closing and some after.
  • Buyers loan policy will show full loan policy amount
  • Simultaneous discount rates need to be negotiated.
  • Last minute changes will impact Closing Disclosure delivery time.

Source: WFG News

Your Loan in The Valley

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Posted on October 15, 2015, in AGENT TRAINING, REALTORS and tagged , , , , , , . Bookmark the permalink. Leave a comment.

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