Top 5 Things a Real Estate Agent Should Know About TRID

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1- The new Closing Disclosure or CD will be used for most loan applications taken for new mortgages after October 3rd, 2015. The lender, not the closing agent, may be preparing and delivering the CD.

2- The Closing agent (us) must get information to the lender approximately 10-14 days prior to the closing date for completion of the CD to meet the delivery requirement.  This means many things for you the realtor since some of these items indirectly come from your offices.

• You will need to get the title insurance company all of your buyer paid charges prior to this time
• You will need to get your real estate company’s state license number and individual real estate license number for the parties prior to this time.
• Although the sellers side of the CD is prepared by the title company, you should try and obtain as much of this information as possible as many of the prorations do impact the buyer.

3- Changes to the CD after delivery to the buyer may trigger a new 3 day waiting period if changes cause the APR (annual percentage rate) to be upset, or if the buyer changes the loan product or if for some reason a prepayment penalty is added to the conditions of the loan.  Although items pertaining to a walkthrough or inspection will not fall into these categories it is a good idea to schedule a pre settlement inspection to attempt to get all final changes to the lender and settlement agent well ahead of schedule.

Keep in mind that due to the fact that the lender now will be handling the final CD it is imperative to understand that changes the day of closing may delay the final closing and/or wire.  The title company can no longer revise yesteryears HUD in a few quick clicks of the mousse…

4- The new TRID rules may affect the way you negotiate for the buyer in terms of the settlement date and other contract terms:

• A closing 30 days out may no longer be a realistic time frame depending on the lender the borrower is working with.
• If a contract contains a set number of days for the closing to occur then think twice before using the standard 15 of 30 day period.
• This all becomes vital to communicate with the lender and the title insurance company to determine a realistic time frame for closings under the new rules.

5- Be mindful that the lenders and we the title insurance company will be utilizing certain portals and technology to share and communicate information to one another.  If a contract is changed or an addendum is put in place it is very important to make sure this is shared with all parties as soon as possible so it can get loaded in the necessary portal for all parties to see.  Consider having a standard conversation with your buyers about their need to respond immediately to bank requests and constantly remind the seller that they must follow the contract because not doing so may change the date of closing.