As I’m sure you are all aware, we’re just days away from the much anticipated October 3rd implementation of major TILA-RESPA changes. So unless you are planning to retire on October 2nd, the TILA-RESPA Integrated Disclosure (TRID) will be “business as usual” for every contract ratified and loan started on or after Saturday October 3rd.
TRID is far more than a new set of mortgage disclosures. Integrated mortgage forms, disclosure documents, and the scheduling of loan closings… We know that your homebuyers will be expecting you to be up-to-date on how these changes will affect their home buying process. That’s why we’re here to help our realtor partners get prepared by understanding how the changes will affect them. The two main components of the changes TRID will bring come in the form of the Loan Estimate and Closing Disclosure.
- Loan Estimate
Good Faith Estimates (GFE) and initial Truth-in-Lending (TIL) disclosures will be combined into a new three page form called the Loan Estimate, or “LE”. Loan Estimates must be delivered to the borrower within three (3) business days of taking a loan application. As with the current GFE and TIL disclosure, the intent of the LE is to provide borrowers with the loan terms and estimated closing costs, but also provides the payment breakdown and “cash to close” calculation.
- Closing Disclosure
Another major form integration replaces the Settlement Statement (HUD-1) and final TIL disclosure with the Closing Disclosure, or “CD”. The days of the 24 hour delivery requirement for the HUD-1 are behind us. The new five page CD must be delivered to, and acknowledged by, the borrower at least three (3) business days prior to closing. This change will most certainly transform the closing process.
I think we can all agree that the biggest fear for everyone involved in a real estate transaction, is a delay in settlement. With these significant rule changes forthcoming, it’s inevitable that many (if not most) lenders aren’t going to be able to close loans within a 30 day period…that won’t be the case with me. Now more than ever it’s critical that you partner with a great lender who is capable of coordinating and closing your clients’ loans on time. The Novotny Lending Team has a phenomenal team of in-house processors, underwriters, and closers, which allow for personalized care and control during the client loan process. As a real estate professional this should give you the confidence you need as you look to close on time, every time.
As always, thank you for your continued trust in me. I am here to help you and your buyers, and I will continue to do everything I can to support you. This is still a service-driven business, and I truly believe the cream will rise to the top in this “interesting” lending environment. Please don’t hesitate to contact me with any questions, or if you’d like more information regarding TRID.