Advice that I am giving my clients now that TILA RESPA (also referred to as TRID) disclosure rules will be impacting 99% of my clients is simple… yet a little murky.
You need to pay attention.
The new TILA rules impact anyone who is buying a home and using a mortgage. The new disclosures will help you understand the cost of your mortgage early on in the process which really will help you (the consumer) compare mortgage options on a uniform platform.
You will need to be actively involved in the mortgage process because a missed deadline will probably delay your closing day.
You will need to shop immediately after their purchase contract is ratified.
- Lender communication with you is critical
- You will need to acknowledge your Intent to Proceed
- Lender communication with the Title Company is critical
The communication between the lender and you is a new critical link in the process because of hard deadlines set in the rules. Proper electronic delivery, and the willingness to explain things to you are two new parts of the relationship.
Ask your lender how the official Loan Estimate will be electronically delivered to you? Will you log into a secure system?
Ask your lender about the process of explaining the new Closing Disclosure, and how you will acknowledge that you are satisfied and accept that document?
Negotiation Strategy:
Make sure your lender has a landing page for TILA RESPA aka TRID
It often surprises me when I discuss consumer behavior online to people in the real estate industry because they are often shocked by my observations.
You probably research everything before you make a purchase decision. Is there a recall on that VW TDI? Is it cheaper on Amazon? Is that company legit?
When you are picking a mortgage lender, see if they took the time to put together a landing page outlining how they are tech savvy and ready to be in compliance. More importantly, how they will deliver everything on time.
A page that builds… confidence.
You should assume that the seller will probably Google your mortgage lender prior to accepting your offer. They want to know that the company is legit and not working out of a garage in Bethesda. (sorry if you’re that guy)
Selecting a solid lender who has invested time in this one thing will help you negotiate.
Communicate | Communicate | Communicate
TILA RESPA (TRID) is intended to protect the consumer. That’s you!
But the responsibility is on you to select the right lender… and the right Title Company that can communicate with your lender.
Interested in seeing the official TILA RESPA Integrated Disclosure timeline example?
Okay, I’m assuming you clicked on that link. Did you notice that Saturdays are considered business days by the CFPB? And did you notice the time line periods?
Closer than ever to your mortgage professional
So, my home buyer tip is that you need to pay attention. Evaluate your lender’s online presence, know they have a secure system to deliver your disclosure forms, talk with your lender if there are changes, accept your closing disclosure three days before your “closing”, and plan on a 60 day contract to closing period.
Read through CFPB’s Know Before You Owe web site today.
