Shirley survives TRID and a home purchase

TRID –
TILA-RESPA Integrated Disclosure rule

The TRID is a rule mandated by the Consumer Financial Protection Bureau as part of the Dodd-Frank Act designed to clarify the way consumers receive information about mortgage loans.
The TRID is intended to make it easier for conusmers to locate key information, such as interest rate, monthly payments, and cost to close the loan.

The TRID designed to simplify the mortgage / home purchase process by consolidating four existing disclosures required under TILA and RESPA into two forms:
– Loan Estimate (LE) – combines the Good Faith Estimate (GFE) and the Initial Truth in Lending (TIL)
– Closing Disclosure (CD) – combines the HUD-1 and Final Truth in Lending

October 3, 2015, TRID went into effect, and all loans / loan appplications must comply with the TRID requirements.    Thank you Barney for this super Act to go into the home purchase financial process.  It’s two months later, and real estate professionals, as well as many buyers, have given the acronym a new meaning: TRID stands for “The Reason I Drink.”

Tight credit coupled with low inventory has been the bane of buyers in 2014 and 2015. When TRID went into effect, another layer of regulations transformed the already difficult loan process into something even more complex and confusing for today’s buyers and real estate professionals.  And here’s some examples of why additional difficulties:

– Seemingly, the lenders who are generating the Closing Disclosures (CDs) are struggling with the process as several agents have heard reports of data entry issues.
– Agents can no longer make last-minute changes or repairs under TRID without issuing a new CD and thereby restarting the clock.
– Most lenders will require an inspection of all repairs prior to closing and possibly before issuing a CD.

More detail?  CLICK HERE for an article by Bernice Ross of inman

Cliff Daniels
Active Properties
Boulder Colorado
720 434 1418