Big changes to the loan and closing process...9/29/2015
Wow, it's been over a year that I have added to this blog - way to be too busy to market yourself, Mitch! The good news is that 2015 has been a great year for our team, as we have already closed 40 transactions from January 1 - September 15...and we anticipate a strong year-end finish as well.
So what's there to talk about at this time in the real estate arena?
The most interesting thing to discuss is the big change coming down the pike effective October 3rd, 2015 for loan applications and real estate closings, called TILA-RESPA Integrated Mortgage Disclosures (TRID, for short). This is a whole new system that will replace the Good Faith Estimate and HUD-1 Settlement Statement with more detailed forms, and more importantly, will incorporate specific time deadlines for these forms to be delivered to the participants of the transaction. In my opinion, this will be of tremendous benefit to the participants in the transaction.
The new form at the beginning of the transaction for buyers that will replace the initial Good Faith Estimate, is called the "Loan Estimate," and this form must be received by the buyer/borrower NO LATER THAN 3 DAYS AFTER LOAN APPLICATION. The new form at the end of the transaction that will replace the HUD-1 Settlement Statement and the revised Final Good Faith Estimate is called the "Closing Disclosure," and this form must be provided to the participants of the transaction AT LEAST 3 DAYS PRIOR TO THE CONSUMMATION OF THE TRANSACTION (the closing), NO EXCEPTIONS. How wonderful! No longer will buyers and sellers walk into a closing having no idea what to expect on the numbers side of their large real estate transaction.
I am quite pleased with these changes, but I do anticipate some difficulties as these changes are implemented by lenders and closing attorneys transitioning to the new program. If you are soon to be involved in a real estate transaction, I recommend that you ask your lender and your closing attorney up-front about their preparations to migrate to the new TRID system, and whether they anticipate any problems that you should be aware of. It is best to anticipate problems in advance, especially if you have a tight time schedule.
And of course, if you ARE in the market to buy or sell real estate, please contact us so we can provide the Finest Agent Representation to YOU as a Buyer or Seller - period.