TRID Guidance for Realtors
September 22nd, 2015
Effective Oct. 3, 2015 all financed real estate transactions will adhere to new CFPB rules, referred to as TRID (TILA / RESPA Integrated Disclosure Rule).
The important thing for you to know is that TRID imposes minimum waiting periods before the transaction can close and those waiting periods start over every time there is a change to the loan terms, credits, purchase price etc.
It is crucial that REALTORS® understand these changes to guide clients through the new process and help ensure smooth, on-time closings. We’re providing these tips on what you can do to keep your client’s closing on time and stay within the new TRID requirements.
What you can do:
- Recommend that your clients shop for a lender BEFORE shopping for a home. Switching lenders once in contract will delay the close of escrow.
- Choose Escrow Company in advance; escrow fees are needed immediately after ratified contract to accurately disclose and order appraisal.
- Select a title company that is responsive and efficient. Delays in escrow fees and preliminary reports will delay the close of escrow.
- Encourage clients to promptly comply with the signing of lender disclosures and document requests.
- Communicate, communicate, communicate!! Changes to the sale price and/or seller credits must be disclosed to the loan officer within 5 days after inspections.
- Submit Seller and Realtor terms to escrow within 5 days after inspections.
- Set realistic timelines, especially during the initial implementation phase.
- Remember - Business day is defined as all calendar days except Saturday, Sunday and public holidays
What we’ll do:
- E-mail the Closing Disclosure document to the borrower for the shortest wait period to apply. The CD must be signed at least 3 business days prior to signing loan documents.
- Send the loan documents to escrow during the 3-day waiting period to facilitate immediate signing of documents after the waiting period is met.
- Utilize an early appraisal disclosure to order the appraisal as early as possible.
- Plan, learn and be ready to integrate these new rules.
- Continue to monitor, communicate and lead in every step for a successful closing.