As of October 3, the new mortgage disclosure requirements went into effect. The TILA (Truth in Lending)-RESPA (Real Estate Settlement and Procedures Act) Integrated Disclosure Rule (TRID) was instituted by the Consumer Financial Protection Bureau (CFPB), part of the Dodd-Frank Act. If this sounds like a mouthful, you can imagine the amount of time and training that has been done throughout the mortgage, escrow, and title insurance industries.
Below is a useful print out provided by one of our lenders as to the various steps required with the new TRID disclosure process. Basically, once we get over the “newness” of the forms, most everyone I talk to is getting the hang of the system. In many ways, the new disclosures are more reader friendly and less complicated to the borrower. The biggest issues are in the timing of the forms. Before a file can go to loan docs, the Closing Disclosure has to be sent to the borrowers and a grace period has to pass where the client can review the final loan terms. Once we get the hang of the timing, things should move smoother. In cases where there was a change of terms for whatever reason, new forms have to be originated and sent to the borrower.
In reading this print out, the new requirements seem somewhat overwhelming. However, as in the past, we will manage and within a few months, we’ll look back and laugh about how much we feared the new guidelines.