{"id":2077,"date":"2015-09-10T07:19:25","date_gmt":"2015-09-10T11:19:25","guid":{"rendered":"http:\/\/dankrell.com\/blog\/?p=2077"},"modified":"2021-11-23T17:31:32","modified_gmt":"2021-11-23T22:31:32","slug":"trid-implementation-remakes-the-home-buying-process","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2015\/09\/10\/trid-implementation-remakes-the-home-buying-process\/","title":{"rendered":"TRID implementation remakes the home buying process"},"content":{"rendered":"

\"real<\/a>Earlier this year I informed you about the upcoming Consumer Finance Protection Bureau (CPFB) TILA-RESPA Integrated Disclosure <\/a>(TRID) rule that was to begin in August. The implementation date was moved to October 3rd<\/sup> for a number of reasons, including feedback from the lender community indicating that they needed more time for compliance.<\/p>\n

Fast forward to the present, and we are several weeks away from implementation. Overall, lenders are ready to comply with new disclosures and procedures. Realtor\u00ae Associations <\/a>have also been busy getting members up to speed on expected changes and how to cope with potential issues that may arise. However, many are bracing themselves for the initial implementation to see how transactions will be affected.<\/p>\n

Some have offered a different perspective<\/a> on how the initial implementation may happen. For instance, the CFPB requires lenders to provide new disclosures three days prior to closing; however, some lenders may superimpose a longer waiting period (such as five or seven days) so as to ensure their compliance with the new rule. So any delay would tack on those extra days. Additionally, I have been told by loan officers that the 30 to 45 day mortgage closing process will go by the wayside, and that home sale contracts should allow for at least 60 days to go to closing; as well as allowing for flexibility if glitches arise to ensure compliance with the new rule.<\/p>\n

The settlement process will be different. Closing documents will no longer emanate from the title company, but instead will be prepared by the lender and sent to the buyer and seller. Closing will occur at least three days later. Lenders are vetting title companies to ensure compliance with the new rule. As a result, an unintended consequence may be that home buyers will not be able to choose their title attorney like they are used to (as provided by RESPA <\/a>and state law); and will have to choose from a list of lender \u201capproved\u201d title companies. Hopefully the lenders are not steering buyers to title companies where affiliated business arrangements<\/a> exist, as that is an entirely another issue that the CFPB is pursuing.<\/p>\n

If you\u2019ve bought or sold a home in the past, the current contracts may seem somewhat familiar. However, as of October 3rd<\/sup>, new contracts and addenda will be in use to address the new rule; making it a new experience for everyone. If you\u2019re planning a sale or purchase after October 3rd<\/sup>, make sure your agent<\/a> is familiar with the new contracts and addenda so as to ensure they are managing timelines properly and understand how contingencies are affected.<\/p>\n

The lingo <\/a>will change too. If you\u2019re borrowing money from a lender, you will no longer be a borrower; but instead you\u2019ll be called a \u201cconsumer;\u201d and your lender will be referred to as the \u201ccreditor.\u201d Your good faith estimate will be a \u201cloan estimate.\u201d The time tested HUD1 with which we are familiar seeing at closing, will no longer be in use; and in its place will be the \u201cclosing disclosure\u201d sent to the buyer and seller.\u00a0\u00a0 You will no longer look forward to your settlement day, but instead you will look forward to the \u201cconsummation.\u201d<\/p>\n

If you are planning to be in the market, you can familiarize yourself with expected changes to the buying\/selling process by visiting CFPB\u2019s \u201cKnow Before You Owe<\/a>\u201d (consumerfinance.gov\/knowbeforeyouowe).<\/p>\n

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\nDisclaimer<\/a>. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

Earlier this year I informed you about the upcoming Consumer Finance Protection Bureau (CPFB) TILA-RESPA Integrated Disclosure (TRID) rule that was to begin in August. The implementation date was moved to October 3rd for a number of reasons, including feedback from the lender community indicating that they needed more time for compliance. Fast forward to … <\/p>\n

Continue reading “TRID implementation remakes the home buying process”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[433,270,1012,55,13,41],"tags":[724,490,511,912,821,797,815,1013],"class_list":["post-2077","post","type-post","status-publish","format-standard","hentry","category-consumer-financial-protection-bureau","category-home-buyer","category-home-buying","category-mortgage","category-real-estate","category-settlement","tag-cfpb","tag-home-buyer-2","tag-home-buying-process","tag-home-seller","tag-mortgage","tag-real-estate","tag-settlement","tag-trid"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-xv","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/2077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=2077"}],"version-history":[{"count":8,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/2077\/revisions"}],"predecessor-version":[{"id":6363,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/2077\/revisions\/6363"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=2077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=2077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=2077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}