On October 3, 2015, most Borrowers who need mortgage financing to purchase or refinance a home will be impacted by the new rules of TILA–RESPA Integrated Disclosure (TRID).
Within 3 days from loan application, the consumer will receive a new disclosure that replaces the Good Faith Estimate and Initial Truth In Lending called the Loan Estimate (LE). The Loan Estimate has clear language and is designed to help consumers better understand key features, the cost and risks of the loan they are applying for. The Loan Estimate will identify the estimated monthly payment and cash to close.
The current HUD–1 Settlement Statement and Final Truth in Lending disclosures are being replaced by the Closing Disclosure (CD). This must be received by the consumer 3 business days prior to the loan closing. The lender is responsible for providing the Closing Disclosure, including the HUD-1 information that the Title company was previously responsible for. The Title company is responsible for providing the Closing Disclosure to the seller.
The following is needed for a loan application:
• Social Security Number
• Property Address
• Estimated market value
• Estimated loan amount
Due to the significance of the above changes, closing dates should be scheduled for a minimum of 45 days.
Feel free to contact me if you have any questions regarding these changes.