Loan Estimate – This will replace the Good Faith Estimate and Truth and Lending Statement
Time Frame
• Within three days of applying for a loan, the applicant will need to be provided with the Loan Estimate from the lender. The Loan Estimate will emphasize key provisions to assist the client to shop around for the best deals.
Closing Disclosure – This will replace the HUD Settlement Statement
Time Frame
• The client must receive the Closing Disclosure a minimum of three business days prior to the consummation of the transaction. To insure the Lender is compliant with this regulation it will require them to add at least another 3 days to the delivery timeframe.
This new time frame requirement indicates the real estate transaction cannot take place until at least six business days have elapsed after the lender sends out the finalized Closing Disclosure to the client. Lenders may decide to send the Closing Disclosure even earlier than the six days in order to safeguard that their deadlines are met.
These new regulations will require the need for quicker and more accurate communications between the key parties in the transaction. Transaction specific details will have to be resolved and the necessary figures will need to be collected and communicated to the Settlement Agent much earlier in the process than ever before.
Another relevant aspect of TRID will be insuring the security of non-public personal information, this will be paramount. The new CFPB Compliance and Regulations will not allow the Final Closing Disclosures to be shared with anyone other than the parties actually purchasing or refinancing the property.
Knowing the TRID rules and co-operation among all parties will be essential to assist in making this an easy transition.
James J Caruolo Law Offices 33 College Hill Road Warwick, RI 02886 (401) 828-7100
Visit our website at http://lawofficesofjjc.com.
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