Some Important TRID Answers You Will NOT Believe & You Should Know!

What Realtors, attorneys, buyers, & sellers need to know about how TRID will change a purchase closing

What Realtors, attorneys, buyers, & sellers need to know about how TRID will change a purchase closing

For most real estate professionals, TRID is the least understood big regulation in history probably and it starts October 3, 2015!

Can a lender, settlement agent, or mortgage broker provide a real estate agent a copy of a buyer’s Closing Disclosure? 

Believe it or not, the answer is NO!

TILA/RESPA rule clearly states that the settlement agent, creditor, or broker CANNOT give a copy of the Closing Disclosure to the Real Estate agent.  Only the borrower can give the agent a copy.  The reason is there is non-public information on the disclosure.

 

Who is responsible for providing the seller’s copy of the disclosure to the sellers?

As a technical requirement, the settlement agent is responsible for providing the seller’s copy and can meet that requirement by providing a copy of the borrower’s Closing Disclosure.  If the settlement agent creates a separate seller’s transaction Closing Disclosure, the settlement agent must also provide a copy of the disclosure to the creditor.

Who is responsible for preparing the final Closing Disclosure?

The lender or the settlement agent/closing attorney may prepare the Closing Disclosure BUT the lender is responsible for ensuring that the Closing Disclosure is fully accurate so you will see most lenders will prepare this since it is their neck on the line.  See a sample of the Closing Disclosure here

We are getting emails from a home warranty company saying that there are 3 options for making sure that their home warranty does not cause an issue with TRID, so what do they mean?

  1. They are letting you know that with TRID’s new forms the Loan Estimate and the Closing Disclosure, that a home warranty cost goes in the “other” section for each form AND
  2. Even if the cost is left off of the Loan Estimate or the Closing Disclosure, it can be added after the closing disclosure is provided and it is not a fee that will cause a redisclosure and delay because it “is not deemed a material change” OR
  3. If you don’t get a chance to include the home warranty at closing, a home warranty can be purchased after closing but of course it would not be included in the numbers at closing in this instance.

Some quick suggestions that could be helpful to remind buyers to avoid unnecessary delays:

  • Remind buyers to look for the e-consent email from us and to follow the instructions in the very beginning.  If e-consent is not confirmed, then the mailing requirements must be followed and that means a much slower closing
  • Before making an offer on a house, decide on a closing attorney and obtain the attorney’s actual costs breakdown to share with us.  This will save time in disclosing.
  • Decide on the types of inspections which will be needed
  • Find out the HOA dues and costs which will be at closing such as working capital, transfer fee, etc

Keep in mind that these interpretations of TRID are not to be portrayed as legal advice.

Team Move lends in areas such as Wilmington, Leland, Hampstead, Jacksonville, Camp Lejeune, Whiteville, Shallotte, Southport, Elizabethtown, Lumberton, Fort Bragg, Pope Air Force Base, Fayetteville, Pinehurst, Southern Pines, Rockingham, Raleigh, Garner, Smithfield, Clayton, Goldsboro, Charlotte, Greensboro, Winston-Salem, Durham, Chapel Hill, Burgaw, Castle Hayne, Holden Beach, Supply, Ocean Isle Beach, Sunset Beach, Hubert, Tabor City, Carolina Beach, Kure Beach, Laurinburg, Topsail Beach, North Topsail Beach, Surf City, Sneads Ferry, Richlands, Wrightsville Beach, New Bern, Oak Island, Saint James, Wallace, as well as the rest of NC.  North Myrtle Beach, Myrtle Beach, Conway, Loris, Little River, Longs, as well as the rest of South Carolina and Virginia.

Author: Russell Smith

Team Move OVM Financial loan officer success is Russell’s primary focus. He provides the tools and techniques he used as a top producing loan officer. Additionally he offers the Team Move OVM Financial Agent Training Program. Sharing is so important to Russell so he works diligently to be a resource to loan originators and Realtors.