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TRID New Closing and Mortgage Rules in Effect!

TRID - TILA-RESPA Integrated Disclosure

Across the country ( not just Florida !) lenders, title companies and consumers must now adhere to new Federal Government mandated real estate closing guidelines called TRID (TILA-RESPA Integrated Disclosure).

With little media exposure, and little fanfare, the following is now the new normal as at October 3/15…

**Good Faith Estimates and Truth-in-Lending statements are gone…now replaced with a Loan Estimate (LE)

**Closing HUD’s and a Final Truth-in-Lending statement are gone…now replaced with a Closing Disclosure (CD)

There’s lot’s going on here, mainly for realtors and lenders, but what does this mean to you, the buyer and/or the seller of a home?

Firstly, sales closing times for financed transactions will take longer. Agents will have to advise clients that closing times will need to be extended from the typical 30 days to at least 45 days. This is because lenders need more time to comply with the new rules, not to mention lenders now produce the Closing Disclosure ( …formerly the HUD was produced by the closing agent )

Secondly, and more importantly, there are now strict timing guidelines that borrowers and lenders must meet…or the closing date can be pushed back as much as 10 days. That’s right…without either the buyers or the sellers consent, a lender who must make any last minute document changes may freely and legally extend the closing. So BUYERS…don’t schedule your moving truck to be in the driveway on the “closing date”…as it may well be extended. And SELLERS…don’t count on the funds from your sale to be immediately available for your new purchase…closing dates are now likely to be a moving target.¬†That’s because all required loan and sales documentation must now be submitted 7 days prior to the closing to confirm the close date. Anyone recently in a financed transaction knows that many changes were made up to and even on the closing date!! So this will definitely present some challenges.

Fortunately, Maureen and I are here for you. Whether buying or selling a Sarasota home we will be on top of all the details, and will set your expectations early for any possible issues as your closing date approaches.

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