In your travels with buying or selling a home, or just surfing the web, you may have come across something called TRID going into effect on October 3rd, by some government agency called the CFPB. Well, the Consumer Financial Protection Bureau (CFPB) will be instituting the new TILA RESPA Integrated Disclosures (TRID) laws this Saturday, and there are some changes that will affect you on both sides of the playing field. So, to cure any confusion, here is what you need to know about TRID, and how it will affect you.
What is TRID: TRID is one part of the multi-staged Dodd-Frank Act that went into effect after the Wall Street crash of 2007 in an effort to protect consumers from the unstable housing and lending market at that time. TRID has been the buzz in the real estate community for a few years now, but on Saturday, it is finally coming to fruition. It is essentially a rule that will instate the use of two different documents during the transaction process: one—the Loan Estimate—that must be delivered 3 days before the start of the mortgage approval process, and the other one—the Closing Disclosure—3 days before the closing. These new documents will replace the older versions and essentially make the lending process smoother.
How Will TRID Affect Me? TRID, for the most part, should have no profound effect on you, but in the early stages of integration, be prepared for some delays for the whole real estate machine to catch up to speed with the new cog. For the first few months, there could be some delays (up to 15 days) added onto the buying/selling process for the industry to become antiquated with these new rules. Also, if these new forms are not filed within their proper window, then the process will come to a screeching halt until the lender has met the required time constraints.
Overall, the only effect TRID may have on you is a slight delay in the home buying/selling process; otherwise there’s no need to worry. However, if you still have questions about this new change, please either call our American Dream office at (856) 299-6444, or come on in and have a chat with us—we’d be more than happy to talk with you.