TRID Guide Aims to Ensure On-Time Closings

August 18, 2015

The Consumer Financial Protection Bureau has published a new guide for real estate agents detailing all the changes with the upcoming "Know Before You Owe" mortgage initiative, which goes into effect Oct. 3. The guide aims to help ensure "smooth and on-time closings" when the TILA-RESPA Integrated Disclosure rule are implemented.

The new mortgage rules are expected to have sweeping changes across the industry by merging the HUD-1 Settlement Statement, the Good Faith Estimate, and the Truth-in-Lending disclosure form into two new closing forms: a Loan Estimate and a Closing Disclosure.

The new rule also aims to provide consumers with more time to review the total costs of their mortgage prior to closing. The Loan Estimate form is due to consumers three days after they apply for a loan, while the Closing Disclosure form is due three days prior to closing.

CFPB's new toolkit for agents includes sections on how to have on-time closings, an overview of what has changed and the new loan documents, and the ability to share resources with your clients about the new rules.

You can view CFPB's guide for the new TRID rule here.

Source: Consumer Financial Protection Bureau