TRID changes and its impact on the real estate transaction

The Consumer Financial Protection Bureau (CFPB) is protecting the consumer's best interests.

Know your partners: Are they ready? Do they have the ability and technology to get your transaction done?

  • Lenders - Do they have their own appraiser panel or use an Appraisal Management Company (AMC), which can lengthen appraisal turn-times?
  • Title companies – Are they ALTA Best Practices Certified?
  • Insurance agents – Will they issue the insurance policy within 10 days of contract acceptance?

Use of local companies can be beneficial.  You can do face-to-face meetings with your service providers, if needed to address the new tightened time frames. 

Many lenders will be conservative on turnaround times at implementation, since they must prove to the regulators that the mandated wait times have been satisfied. Many lenders (especially larger banks and national mortgage companies) will likely not allow closings less than 7 days from issue of the final Closing Disclosure.

Checklist for borrowers:

  • Utilize eConsent at initial loan application - this provides the ability to expedite the transaction and wait times.
  • Execute "Intent to Proceed" as soon as possible.
  • Pay fees upfront (credit, appraisal and other required fees) when allowed.
  • Obtain homeowners insurance within the first 10 days of the contract.
  • Deliver all requested documentation to the lender upfront.
  • Consider doing “double walk-throughs” with the first one being 15 days prior to close.  This allows for flexibility, if needed, without delaying the closing day because of issues arising from the final inspection.
  • Lender interaction and participation with all parties involved in the transaction will be more important than ever. 
  • Borrower engagement is important - response to requests early and often during the transaction will expedite the process.

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