BLOCKER HOMES, LLC
LEHIGH ACRES, FLORIDA

TRID is the result of the Federal Consumer Financial Protection Bureau’s “Know Before You Owe” initiative in which the agency is trying to make the home buying process easier to understand for consumers as well as making important documents available before the actual closing takes place. TRID is an acronym which stands for the  TILA stands for the Truth-in-Lending Act. This law regulates all consumer lending, not just real estate finance. For example, if a consumer obtains a credit card, there will be a TIL disclosure issued for the purpose of giving the consumer the “true cost” of borrowing by factoring in borrowing fees into an overall number called the “Annual Percentage Rate” or APR. What is unique about mortgages is that an initial TIL Disclosure is required for mortgages within three business days after submitting an application and a final TIL Disclosure is required at closing. In contrast, you might obtain a credit card the same day you apply for it. RESPA stands for the Real Estate Settlement Procedure Act. This law specifically focuses upon the regulation of residential real estate transactions. There are many aspects of RESPA, but here we will focus on another required disclosure, the “Good Faith Estimate” of Closing Cost, which also must be issued within three business days of application. RESPA also requires the issuance of a HUD-1, the final closing statement, which some years ago was aligned so that the numbers were synchronized with the initial Good Faith Estimate. Though these rules are designed to make the process simpler, in reality the requirements for timing, re-disclosure if changes occur before closing, and making the forms “multi-purpose,” can actually be quite complex. Even the definition of what constitutes a “business” day can be confusing. The Closing Disclosure must be provided to the consumer three business days before closing.  This means that transaction’s numbers must be finalized well before the settlement date. The Loan Estimate must be issued seven business days before closing. Depending upon weekends and Holidays, this means that most closings must occur at least two weeks after application. In addition, if allowable changes occur, the Loan Estimate must be reissued within three business days and received by the consumer four days prior to loan closing. The applicant must get all required documents to their mortgage company promptly and make sure they are complete, legible and accurate. The title company must provide required information to the mortgage company so that the final numbers can be calculated on a timely basis. The mortgage company must process and underwrite the file within a timeframe which will allow the final disclosures to be issued on a timely basis. In addition, obtaining a preapproval puts a consumer in prime negotiating position with a seller who may be entertaining multiple offers. This preapproval basically signals to the seller that the prospect is a serious buyer. Many times one consumer will be attempting to effect two real estate transactions in one day – selling a home and then purchasing a home. The vast majority of the time, the owner must sell the home first because they need the cash from closing to purchase the second home and typically can’t qualify with both payments. Under TRID, this more complex situation is likely going to be more difficult to coordinate because of the disclosure timing requirements. In these cases it may behoove both the buyer and seller to obtain their mortgage from the same lender so that coordination is more seamless in this regard. Under TRID, the world of real estate transactions is changing. The purchase of a home is the most important investment for most Americans and certainly a most important lifestyle decision. It is imperative that a potential homebuyer work with a mortgage company armed with the technology and experienced staff to effectively and efficiently comply with the timing requirements of TRID, ensuring a smooth and on-time settlement. Franklin American Mortgage Company If you’re a buyer, you want to check out our Featured Homes, as they’re selected for their quality and amenities. As a seller, you’ll want to see your home on this page. The data related to Real Estate for sale on this website comes in part from the INTERNET DATA EXCHANGE (IDX) program of the North Texas Real Estate Information Systems Inc. Real Estate listings held by Brokerage firms other than this site owner are marked with the IDX logo. Consumers accessing this site may not reproduce or redistribue the NTREIS data and it is only for use search for homes on this site. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s), Ultimate IDX, nor the owners of this site shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless.