What Realtors Need to Know About “TRID”
1. YOU WILL NEED TO BE ABLE TO EXPLAIN THE NEW DISCLOSURES
Loan Estimate (LE) For loan applications taken on or after October 1st, 2015 all lenders will be using the Loan Estimate
(LE) which is replacing the current GFE and initial TIL. The LE will be three pages and contain terms and fees of the loan.
Closing Disclosure (CD) is intended to replace the HUD-1 and the final TIL. The CD is a five page form used to disclose terms and provisions of the loan as well as the financial transaction information. The HUD-1 line numbers will no longer be, all fees are now alphabetized and grouped by tolerance type.
2. THE PARTY PROVIDING THE CLOSING DISCLOSURE WILL BE DIFFERENT
Our company will be disclosing the final Closing Disclosure, Title and Escrow Companies will no longer be responsible for providing the document to the borrower. We will partner with settlement agents to ensure accurate and timely data transfer.
3.TIMING OF CLOSING WILL BE BASED ON THE CLOSING DISCLOSURE DELIVERY
Borrowers will be given three days to review the Closing Disclosure prior to consummation. The three days starts when the borrower RECEIVES the form, not when the lender sends it. As a result, unless confirmation of receipt is received by us, the wait period will be 7 days.
4. DISCLOSURES WILL BE MORE FREQUENT AND IN GREATER NUMBERS
The Closing Disclosure will be in the borrower’s hands three days before they sign loan documents. It is highly likely that there will be changes to the Closing Disclosure between the time the borrower receives the document and signs the note. Revised Closing Disclosures can be given any time at or before consummation as long as the Loan Program doesn’t change and the APR doesn’t increase. If the Loan Program changes or the APR increases the three day wait period will restart and consummation will have to be moved to compensate for this.
WHAT SHOULD YOU ASK YOUR MORTGAGE ADVISOR AT ABSOLUTE
Listing Agent: Has the borrower given their intent to proceed? If not, they haven’t selected their Lender. They have 10 days to express their intent.
Selling Agent: Confirm that the borrower has expressed their intent to proceed and provided their credit card information to order the appraisal.Credit card information can only be accepted by the lender AFTER intent to proceed has been given.
Listing Agent: Make sure title/lender has all of your fees including commissions. Make sure the borrower received the Closing Disclosure AT LEAST three days before signing.
Selling Agent: Make sure title/lender has all of your fees including commissions. Make sure the borrower received the Closing Disclosure AT LEAST three days before signing and has acknowledged receipt of the Closing Disclosure. After the Closing Disclosure is issued try not to change anything. IF you do change something notify title/lender IMMEDIATELY. If client wants to change something make sure it doesn’t affect the loan program or APR.
Please contact us if you have any questions!