Learning About The New TRID
Setting the expectations of your clients is paramount to your success, should this new regulation upset the apple cart at closing. You can be assured that our company is well prepared and will do all that we can to set the expectations of those trusted referrals you send us. However, we cannot control the damage that may occur from others in the “chain of closing.” So here is what every Real Estate Agent needs to know about the new TRID Rules.
- The HUD-1 & Good Faith Estimate is being replaced by a new “closing disclosure” which mirrors the “Loan Estimate” for most mortgage loans.
- Lenders must adhere to “tolerances” on their company fees. What we disclose as lender fees are what the borrower will receive unless there is a change of circumstance.
- Working with random title companies will most likely disappear completely, because lenders are required to quote those fees within a tight range. Therefore, they will only do business with those who have fees they know well. Expect to see limitations on the title companies that can be used.
- The regulations around the timing and review of disclosures are very complex, especially when things change, so keeping things steady at least 7-10 days prior to closing is important.
- Without exception, the borrower must receive for review a copy of their “closing disclosure” at least 3 days prior to closing for the consumer to review.
- Changes made at the last minute should be well thought out because even minor changes can result in having to re-draw the documents and waiting another 3 days for closing.
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