TRID OR TREAT!
TRID SHOULD NOT SCARE YOU THIS HALLOWEEN SEASON!
TRID stands for the TILA-RESPA Integrated Disclosures. These new disclosures replace the Good Faith Estimate, Truth in Lending Disclosure Statement and the HUD-1 Statement with two new disclosures; the Lender Estimate and the Closing Estimate. It seems like the fear of TRID hit the Real Estate and Lending industries like a hurricane this month, but like most hurricanes, it fizzled out and wound up being more like a sprinkle.
Here’s what you need to know as a Real Estate Agent:
- Open new escrows quickly because your Mortgage Broker needs the escrow and title fees ASAP to generate the new Lender Estimate that goes out with the initial loan application.
- Make sure you are working with an Escrow / Title company that understands the sense of urgency to send escrow and title fees quickly to the Mortgage Broker (trust us – some escrow people are quick and others are PAINFULLY SLOW!!!).
- There is a 3 day waiting period to get loan documents out once the lender issues the 2nd disclosure, the Closing Estimate.
IMPORTANT PART TO READ – So the real hold up is the 3 day waiting period after the 2nd disclosure, the Closing Estimate, is issued. Sundays and holidays do not count towards the waiting period. If the Closing Estimate is issued on a Thursday, for example, the borrower would have to wait for Friday, Saturday and then Monday to pass before we can issue loan documents that next Tuesday. That’s definitely not great for those short escrows timelines.
Here’s the good news! We can issue the Closing Estimate early on in the mortgage process. We do not have to wait for the clear to close for loan documents before the Closing Estimate is delivered to the borrower. While waiting for the appraisal report to be completed and clearing those loan conditions associated with a formal loan approval from underwriting, we can issue the Closing Estimate and start the 3-day wait period early on!
So the take away here is that we can still close a mortgage transaction quickly! It’s not the end of the world! It’s not that scary! However, be mindful of those BIG scary banking institutions with their million-dollar proprietary lending systems and layers of corporate and legal compliance – the Big Banks have a hard time making changes in their systems and they are the ones that spread this fear of TRID in the first place.
Happy Halloween from Michael DiVita and your Home Lending Team @ DiVita Home Finance, Inc.
If you have any questions call us toll free @ 800-239-1103 or send us me an email at Mike@MyCAHomeLoan.com.
About Michael
Michael DiVita, President of DiVita Home Finance, Inc., is a 20-year veteran of the mortgage industry. He has been involved in thousands of loan transactions. Recognizing that the mortgage process needs overhauling, Michael has been investing in and leveraging technology to provide his clients a better mortgage experience. Please subscribe to his blog to receive weekly, relevant mortgage/real estate news.
