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Today, Lizy Hoeffer of Prospect Mortgage is here to talk about some of the changes to TRID resulting from Dodd-Frank that are coming up in October.
The new TRID is part of Dodd-Frank action, new laws that were implemented last year, aimed at helping consumers better understand their mortgage documents and prevent any rushed or predatory lending. Some of the new changes that are coming out have to do with extended wait periods to review disclosures; also, two forms will be merging into one, the Good Faith Estimate and the Truth in Lending sheets.
At the moment, clients receive a ton of different documents and each one has a separate line item for different costs, which are broken down into a different form. To make all of this easier, the documents have been consolidated so that clients can understand what the fees are for their home purchase and what the annual percentage rate is over the term of the loan.
One of the big things this new action is doing is giving consumers a right of rescission period. This means that if you get the loan documents turned in to the title company on Monday, you have a 3-business-day waiting period before you can actually close. This will help clients from being rushed to sign at the closing table, giving the clients plenty of time to absorb and understand the financial contract they're getting themselves into.
One of the negatives of these changes is that it takes a bit longer to close. If a deal goes sour late in the process, you'll have to go through all the waiting periods again as you find a new lender. In other words, the days of 10-day closings are over.
All in all, these changes aren't that big of a deal. If you have any questions about this new process, don't hesitate to reach out to Lizy at (480) 818-6222 or LizyHoeffer.com. You can also visit my site for all of your real estate needs at www.forsalephoenixhomes.com. Of course, if you have any real estate questions, don't hesitate to reach out to us! We would love to hear from you!