by Buz Wolfe
By now, you have probably heard about TRID – – the big real estate change which occurred on October 3rd. The “TILA-RESPA Integrated Disclosure” was designed and implemented by the federal government in yet another over reaching attempt to “protect” consumers. TILA stands for “Truth in Lending Act” and RESPA stands for “Real Estate Settlement Procedures Act”. These two federal lending requirements are to be “Integrated” into a “Disclosure” that provides very firm rules as to the precision and advance notice to which lenders must adhere in providing information to borrowers.
While the goal of providing consumers/borrowers/buyers with more accurate and timely information is a very good one, the new procedures are fraught with problems and will be likely to create many personal crises and painful delays in settlements.
What do you need to know? Basically, the most important thing that parties to a real estate transaction should know going forward is that it will be more important than ever to deal with LOCAL lenders, attorneys, title companies and settlement agencies.
Many of the functions previously performed by title entities and settlement entities will now be purely the responsibility of the LENDER. Borrowers/buyers will now have three days after receipt of their Closing Disclosure to review the form prior to closing. Any changes to the Closing Disclosure will likely trigger a new three day waiting period before closing can occur. Any changes made by the lender or by any of the borrower’s/buyer’s activities since the initial Loan ESTIMATE will also require the three day waiting period – – there is very little ability to avoid the “three day rule”.
For additional information on TRID and how it may affect you, feel free to contact Wolfe & Company Realtors for additional information. Remember – – the lender and settlement agent must work together. Know who you are working with! Local will almost always be better!
And…EXPERIENCE MATTERS! Managing your transaction is more important than ever and no one does that better than Wolfe & Company Realtors!
*Ray L. “Buz” Wolfe, CRS has been Broker/Owner of his own firm since 1986. In 2014, he was again the Carlisle Area’s Top Producing Broker with $10,000,000 in settled transactions.
**All information believed to be accurate but not guaranteed.