TRID Policies and Forms
If you’ve been researching real estate or mortgages recently, you may have come across information about TRID – and how these new TRID policies and forms will be implemented on October 3, 2015.
TRID stands for the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA), Integrated Disclosure. This change is spearheaded by the Consumer Finance Protection Bureau in order to better serve home buyers.
Image via nafcu.org
The ultimate goal of TRID is to make the lending and settlement process more transparent and easier on the consumer. There will be a whole new set of forms that are designed to be more easily understood, and a lot of new requirements for lenders, title agencies, and real estate agents. These new requirements are designed to better protect consumers.
Here’s what you can expect:
1. One of the best things about TRID for buyers is that you’ll find out the exact number that you’ll be expected to bring to the settlement table at least 3 days before the closing. If you’ve purchased a home before, you know that this is a welcome change- it used to be that buyers wouldn’t find out until the afternoon before or the morning of settlement and would have to scramble to get to the bank for a bank check. We anticipate that this process will now be a little smoother.
2. You’ll find a whole new set of forms that are (hopefully!) a little bit easier to understand.
3. Another thing that will change is the settlement date. We can expect longer closings, particularly in the beginning of TRID being implemented, as lenders work hard to ensure that they are fully compliant with the new policies and adapt to the additional paperwork and procedures. It’s unlikely that a home will settle in 30 days. Instead, we’re suggesting at least a 45-60 day settlement window.
4. As settlement day approaches, you can now expect to do two walk-throughs instead of one. While most buyers had just checked the home out one last time on the morning of settlement, they will now be required to tour the home at least 3 or 4 days prior to settlement. Additionally, EveryHome will be encouraging all clients to come back to the home on the day of settlement to make sure that nothing was affected during the seller’s moving process.
At EveryHome, we’ve worked hard to educate our agents on the changes that can be expected with TRID. We enjoy close relationships with title agencies and lenders that have also been working diligently to ensure that the transition is a smooth one. Especially as the new policies become implemented, it is imperative that you select a well-established, educated lender and title agency, and we’re happy to help suggest a few to you. If you have any questions at all, please feel free to give us a call at 215 699 5555.