TRID Impact on Charlottesville Real Estate Closings

Q: What is TRID?
A: The TILA-RESPA Integrated Disclosure

A: (Longer): Truth In Lending Act – Real Estate Settlement Procedures Act

Even Longer Answer: The ways in which buyers and sellers close on houses is about to change. For new buyers, nothing will change (because there’s not context).

A few preliminary takeaways before implementation of the new processes –

1. Work with local lenders. I’m not sure how much more clearly I can advise this. Working with a local lender ensures greater and better communication – and trust –  between all involved – the real estate agent, the lender, the attorney … for those not in or from Charlottesville, we’re still a small town. The good (and bad) real estate folks seem to all know each other, by reputation if nothing else. There’s a conveyed comfort, trust, and accountability amongst the real estate community.
   1. Out of area lenders who don’t know our tax rates, our usual and customary practices, our methods of closing, local procedures (such as: buyers & sellers don’t close at the same table), have a greater likelihood of disservicing the client. If you don’t know the market, you don’t know the market.
2. Be patient. For at least the first few months (this thing starts with new loans initiated on/after 3 October 2015), there may be some more questions, more caution, more duplication of stuff.
3. Ask questions. This isn’t new, but a healthy reminder.
4. We’ll figure it out. The system will work it out, because it has to. People will still buy houses. Loans will still close. If you’re caught in a delay, while it might feel like it, it’s not the end of the world. Promise.
5. As I noted earlier this year:
   1. Who do you recommend for a lender? (I tend to recommend and work with two or three local lenders – because I know them, know them to be honest, know that they’ll answer my texts on a Sunday morning if my clients need them, and know that they’ll alert us to issues before they become major problems … and work to fix them) Also: How do I know I’m getting the best deal on a loan?
6. More accurate and timely understanding by consumers of the forms, the costs, the process is one of the hopeful results.

Related reading:

• Monday Morning Cup of Coffee: Industry getting insistent about TRID guidance (archived: 2019) (Housing Wire)
• 3 Ways TRID Will Impact your Real Estate Business (Inman News)
• TILA-RESPA Integrated Disclosure rule implementation (Consumer Financial Protection Bureau) — these are the folks charged with enforcing/educating regarding these changes