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New mortgage rules starting October 3rd
Blog by Doug Ingersoll | September 28th, 2015
Richard Silva is a neighbor and lender who sent me this update on the workings of the new loan process:
AVOID CLOSING DELAYS BY UNDERSTANDING NEW TRID REQUIREMENTS
- Unlike the current final TIL and HUD-1, the new Closing Disclosure must be received by the borrower no later than 3 business days prior to consummation. This regulation ADDS THREE DAYS to every purchase transaction involving a mortgage loan.
- Because no changes to the CD can occur without resetting the disclosure time clock, all parties shouldprepare to close seven days prior to the actual closing date.
- It is highly recommended that all parties arrange a mid-contract review – we’re calling it a TRID STOP! Selling and Listing Agents, the Lender, Escrow, Buyers and Sellers all need to be aware of any issues that might delay closing.
- Most common delays will be caused by the following if not completed prior to 12-15 days prior to closing:
- Inspection is delayed, which delays appraisal
- Inspection negotiation between buyer and seller is not completed, which causes appraisal delays and/or contract Addendums
- Addendums to the contract have not been forwarded to Escrow and/or the Lender
- Walk-through and sign-off should be completed prior to seven days before closing
- The number one thing to know about the TRID changes is that COMMUNICATION IS KEY to win the race.
LoanStar Home Lending
2198 E Camelback Rd, Suite 380
Phoenix, AZ 85016
NMLS #: 422347