TRID, it’s really not all that complicated for the real estate broker
By Jeff Sorg, OnlineEd Blog
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(December 18, 2015) – TRID is an acronym for TILA/RESPA Integrated Disclosure and is part of Know Before You Owe – Mortgages, the CFPB’s mortgage initiative designed to help consumers understand their loan options, shop for the mortgage that’s best for them, and avoid costly surprises at loan closing. The TRID rules became effective October 3, 2015. Here are seven important things real estate brokers will want to know about TRID:
- The buyer’s settlement statement is now called the Closing Disclosure or CD. You will want to become familiar with this form so you can explain it to your buyer clients. View a pdf copy view the closing disclosure.
- Your settlement agent cannot send you a copy of the CD. If you want a copy, and you should, you will need to get it from your buyer.
- The CD must be delivered by the mortgage lender to the buyer at least three business days before closing.
- In limited circumstances, a change to the CD after it is delivered to the buyer might trigger a new three-day waiting period if the buyer changes loan products, a prepayment penalty is added, or the change causes the previously disclosed annual percentage rate to be inaccurate.
- Your settlement agent will need your real estate company’s license number and your personal real estate license number.
- You’ll want to get your settlement agent all of your buyer paid charges at least 10-to-14 days before closing so these can be communicated to the lender in order for the lender to prepare an accurate CD and meet the requirements for its delivery to the buyer.
- Plan on 45 day closings, and be sure to extend your purchase contracts if new waiting periods are triggered as you get close to this date.
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