Sweeping Changes In Lending
As promised, your in-depth look at the CFPB changes and our new buddy.....TRID. For those of you who don't know, TRID is the ridiculously long acronym that rivals weatherman Liam Dutton's pronunciation of the (now) infamous 58 letter Welsh town. No really. T=Truth In Lending. R=Real Estate Settlement Procedures Act (RESPA). I=Integrated. D=Disclosures. In short, TRID is designed to leave no stone unturned, and no question unanswered in the lending process.
Two brand new, hot off the press disclosures, The Loan Estimate & 5pg Closing Disclosure. When meeting with your loan officer and shopping for lender in particular, the moment of loan application consummation will no longer be in question, as has been the case in the past. There are six key components to officially applying for a loan. Borrower name-ss#-income-address-estimated value of prospective property and finally, the loan amount. The new Loan Estimate must be placed in the MAIL (yes, that's right the mail. You're welcome USPS, the lending process will be keeping you in the black) within three days of official loan application.
Once received, as a consumer it is your right and responsibility to thoroughly review all documents and amounts before notifying your loan officer of your INTEND TO PROCEED.
Hold up....wait.....(in Dr Dre's The Next Episode voice-Featuring Snoop) Intent To Proceed, sounds as if we are venturing into serious legalities here, no? We definitely ARE.
With your Intent To Proceed in place you will pay for the appraisal and move forward with your chosen lender. Many localities have updated Purchase Contract to reflect the timing changes for the new TRID guidelines as well as updated verbiage showcasing the depth of what is involved. This is where your educated, excited Realtor comes in handy.
Selling Your Home
The 3rd and final installment on the CFPB's sweeping lending change will be out next week and is (in my humble) opinion THE most important piece to the puzzle. Particularly if you're selling your current home and purchasing another. This change will drastically impact not just closing days/times but how we handle occupancy as well.