WHY THE CHANGES?
The new TILA-RESPA Integrated Disclosure rule (TRID) is meant to simplify and clarify. These TRID updates are an attempt to improve and correct potential flaws with the current regulations. Here we have detailed some of the ways in which the new regulations will affect both yourself and your lender, as well as how Capital City Home Loans can assist with the process.
THE NEW PROCESS
To begin with, there are two new forms that are much more user-friendly than their predecessors. They are the Loan Estimate and Closing Disclosure forms, which are replacing four different forms from two government agencies. The form layouts are easier to understand, and you might find that they simply look better. They also make comparison shopping for loans easier on the borrower.
Another change is the timing of the closing and the delivery date requirements. Borrowers will now be able to review the Closing Disclosure at least three days prior to closing. In addition, the title company will need to send their info to the lender 10 days before the closing date to give the lender enough time to meet the new delivery date requirements. The seller will receive this Closing Disclosure at or before closing. This prevents the deal from changing at the last minute, while giving buyers more time to review the paperwork before reaching the closing table.
HOW IT AFFECTS LENDERS
Lenders will likely have a lengthier process to undergo than in prior years. They are now responsible for the Closing Disclosure instead of the title company. Internally, they will need to allow for more time in order to have the required forms submitted by the deadline. While the new regulations lay more responsibilities on the lender, they benefit all involved in the long run.
HOW IT AFFECTS YOU
The National Association of Realtors is recommending that Realtors add 15 days to the normal closing time frame to account for these changes. As a buyer, your quoted closing time may increase, but the extra time will likely be beneficial.
Any inspections or repairs will need to be handled earlier in the process than before the new updates. The goal here is to reduce any last-minute complications. So while the burden is increased on the lender, you the buyer can greatly benefit from the new regulations.
HOW BRANDMORTGAGE CAN HELP
There’s nothing to fear, Capital City Home Loans is here! We can help you navigate the TRID maze and come out a winner on the other side. Though the process has changed, our concierge customer service has not. Our experts understand the ins and outs of these new rules, and want to help you feel confident in your home purchase.