TRID is Here

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This will be the last week of files getting into process with the old GFE, TIL and HUD-1.  Starting next Monday we will be under the new TRID guidelines where the GFE and TIL will be replaced by the Loan Estimate and the HUD-1 will be replaced by the Closing Disclosure.  I’m not going to rehash what has already been expounded upon over and over the past 6-9 months.  But here is my thought in a nutshell:  DON’T FREAK OUT.  Sure the 3 day deal is going to be a challenge and there will be some delays along the way.  But the CFPB finally did something right as it relates to disclosure (what the documents cover, the simplicity of understanding them, matching initial paperwork with final paperwork, etc….).  So we take the good with the bad and we move on.

Speaking of moving on, thought I’d give you some suggestions related to the things you can do when advising your clients when they need a mortgage (most of these apply specifically to Realtors, but are worthy recommendations to any client you may be advising from a financial standpoint):

Top 5 things that you can do to help your lender with your client’s mortgage process

  1.  Encourage your clients to be on a 48 hour alert – any time the lender asks for documentation or sends disclosure forms to sign, return within 48 hours (24 if possible, but never more than 48 hours).  Lenders will not ask for documents or disclosures unless they need it.  Prep your clients to be ready to respond efficiently.
  2. Encourage your clients to get their homeowner’s insurance lined up as soon as the home is under contract (and on FHA transactions, get termite inspection done and letter to lender within 2 weeks of contract acceptance).
  3. Only work with title companies that are awesome - agree to have the title work done within 1 week of home being under contract and are all over getting closing figures (used to be HUD-1’s) back to the lender quickly after receiving instructions from the lender.
  4. Provide complete contract (including all addendums – like FHA/VA) to lender the moment all signatures are obtained.  TN Property Disclosure or exemption is required on all loan transactions.  Include a copy of the earnest money check.
  5. Set the actual closing date and time with the attorney within a week of contract acceptance and basically get everyone involved (in your specific transaction as well as any that might be a part of yours from a “domino effect”)