Top 10 Things Real Estates Agents Should Know About TILA-RESPA Integrated Disclosures (TRID)
Legally reviewed by:
Knutson and Casey Expert Legal Team
October 26, 2021
TOP 10 THINGS REAL ESTATE AGENTS NEED TO KNOW ABOUT THE NEW TILA-RESPA RULE
- A new form of closing statement called the Closing Disclosure (CD) will be used for most loan applications taken for new mortgages after August 1, 2015. The lender, not the closing agent, may prepare and deliver the CD.
- The CD must be delivered to the buyer/consumer at least three business days prior to the scheduled closing date.
- Closing agent must get information to the lender approximately 10 to 14 days prior to the closing date for completion of CD to meet the delivery requirement.
- The closing agent will need your real estate company’s state license number and your individual real estate license number for the new CD.
- The CD sent to the buyer won’t include the “seller’s side” of the transaction and the closing agent is responsible for completing the seller’s side of the CD.
- You will more than likely not receive an advance copy of the CD before it’s delivered to the buyer. The lender will likely send the CD to the closing agent when it’s sent to the buyer. You will need to obtain a copy from the borrower.
- Changes to the CD after delivery to the buyer may force a three-day waiting period if changes cause the annual percentage rate to be inaccurate, the buyer changes loan product, or a prepayment penalty is added.
- It’s important to review and become familiar with the CD so that you can answer questions pertaining to the buyer and seller. Obtain advice for the buyer on the protections given to them through the owner’s title insurance.
- The new TILA-RESPA Integrated Disclosures (TRID) rules may affect the contract terms that you help negotiate for either the buyer or the seller. For example, a closing 30 days out may no longer be realistic.
- What system do you have in place to communicate contract changes to the lender after the contract has already been signed? It may be appropriate to have a conversation with buyers about their need to respond immediately to lender requests and remind the seller they must follow the contract to the letter. Not doing so may cause the closing to be delayed.
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