Beginning August 1, 2015 the TILA/RESPA Integrated Disclosures rule, or TRID, will go into effect. The changes are meant to streamline and clarify the disclosure and closing process for consumers and consequently will require some adaptation from lenders and real estate professionals. Some of the major changes include:
• Time requirements required by lenders for new disclosures
• The Loan Estimate and Closing Disclosure forms will replace the current GFE/TIL forms and HUD settlement statement
• There must be one day in between the issuing of the initial and/or revised Loan Estimates and the Closing Disclosure.
These changes will require actions from real estate professionals as well. Real estate professionals will be required to forward contract amendments to the lender immediately upon receipt so the Loan Estimate can be re-disclosed within 3 business days of the change. Lenders and Settlement Agents will also require all invoices to be paid at settlement.
In addition, closing disclosures must be delivered at least three business days prior to closing if electronic or 7 days for mail delivery. Fairway will not share the CD with realtors without borrower authorization and certain changes to a CD will require a new CD and initiate a new 3-day waiting period.
Call me today to set up an appointment! I am happy to provide you with more information about these changes.