Countdown to TRID: 28 Days
The clock is ticking on the approaching TRID ruling, now taking effect on October 3rd. The real estate and mortgage industry will undertake major changes in the closing process after TRID. Realtors and lenders are often at the center of these closing, it is imperative to familiarize yourself with the new practices so you can provide the best experience for your clients. With just weeks left before the looming date, we’re helping our realtor partners get prepared by understanding what to expect and how to handle it! Here’s four things you can focus on to give your clients the best experience post-TRID:
Understand the Changes
Get familiar with the new disclosure documents. Four disclosures have now been integrated into two documents to improve compliance and help borrowers understand their loans. The GFE and TIL have been combined into the Loan Estimate. And the HUD-1 Settlement Statement has been combined with the final TIL statement to create The Closing Disclosure. Read more details on the changes here.
Open the Lines of Communication
Open the lines of communication between you, your clients and the lender. Since the Closing Disclosure will now need to be delivered 3 business days prior to closing, any last minute changes could trigger a new ‘three day waiting period’ and delay closing. Avoid last minute changes by keeping your client informed every step of the way, from HOA fees to homeowner’s insurance. If anything does happen to change the transaction, be sure to communicate and confirm those changes with all parties. This simple practice will ensure smooth, on-time closings, AND happy clients!
Create a New Timeline
The TRID ruling will affect the closing process and schedule. The timely delivery of new forms and documents will be critical to ensure that your closings go smoothly. Realtors should develop new timelines and practices to adhere to these changes. Aim to prepare documents 7 days prior to closing so your clients have enough time to review the loan and make changes if needed. Consider doing walk-throughs with your clients earlier than you currently do or even doing two walk-throughs. This may take more time from your busy schedule, but it will have a considerable effect on what the final Closing Disclosure will look like. This means on-time closings and more business for you!
Build Your Dream Team
Build your dream team of people you can rely on to provide complete and accurate information for your clients. Any hiccup in sharing information will slow down your process significantly. Under the new ruling, lenders will be responsible for processing the Closing Disclosure, making them that much more important. The lender you choose will be the answer to keeping you on your timeline and closing quick. Take this opportunity to evaluate your processes so that you can give your clients the best experience. Get prepared , while there is still time. TRID is 38 days away!
For more information on the The Consumer Financial Protection Bureau website including helpful documents and webinars to prepare for the upcoming transition.