What You Need to Know About TRID

Today, we'll discuss the TILA-RESPA Integrated Disclosure (TRID), which went into effect on October 3rd. Lenders began utilizing a new loan estimate and closing disclosure that the Consumer Financial Protection Bureau requires.

The new disclosures replaced the good faith estimate and the HUD-1 settlement statement. There are also some new timeline requirements that could delay closings if you are not working with someone who knows their way around the new disclosures.

These are actually some great changes for the consumer. The first is the loan estimate, which replaced the good faith estimate normally done at loan application. The loan estimate is given to the consumer three business days after the loan application, and they cannot close for at least seven business days after the consumer receives the loan estimate.

The next form is the closing disclosure, which replaced the HUD-1 settlement statement. The consumer must receive this form at least three days before closing. This is a great change. Usually, the consumer wouldn't get the HUD-1 settlement statement until the day before closing, or even the day of! Now, the consumer has time to review the closing disclosure before they close on the property.

Sometimes, we have buyers in our military market who can only do a walkthrough the day before closing. Don't worry, the walkthrough won't delay a closing. If something comes up, then the seller can give the buyer a credit at closing.

We need to make sure that closings are not delayed for the buyer or the seller. We have the expertise to guide buyers and sellers through the new process. If you have any questions, please give us a call or send us an email. We are happy to help you!