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 –
- 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.
- 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.
- 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.
- Ask questions. This isn’t new, but a healthy reminder.
- 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.
- As I noted earlier this year:
- 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?
- More accurate and timely understanding by consumers of the forms, the costs, the process is one of the hopeful results.
- Monday Morning Cup of Coffee: Industry getting insistent about TRID guidance (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
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And, if I may add. Try not to count on simultaneous closings for those selling and buying.