On October 3rd, the TRID Integrated Disclosure went into effect, making the mortgage process far safer and less stressful for buyers and borrowers. Realtors and lenders have been preparing to meet the new deadlines created by TRID for months. Now that TRID is a reality, both lenders and realtors need to be able to explain to their clients the new advantages offered by TRID and show that they’re fully compliant. Below are the advantages being offered to consumers with the new guidelines.
Easier to Compare Loan Estimate with Closing Price
The CFPB has instituted a variety of regulations to help protect borrowers from unexpected changes in cost between the Loan Estimate and the Closing Disclosure. Previously, there were four disclosure documents. As of October 3rd, these disclosures have been consolidated into the TRID Integrated Disclosure. The Loan Estimate discloses estimate costs for insurance, taxes, and illustrates how the interest rate may change in the future.
All estimated costs are divided into three sections according to the amount they are allowed to change: zero tolerance, which cannot rise at all; 10% cumulative, which cannot rise more than 10%, and no tolerance, which may rise any amount. Instead of comparing four different documents produced by different sources, borrowers now only need to compare their Loan Estimate with the Closing Disclosure.
More Time to Review Closing Disclosure
Prior to October 3rd, the Closing Disclosure was provided to the buyer/borrower at the closing. This process gave borrowers and buyers very little time to review the disclosure and make sure the initial estimate was made in good faith. Under the TRID Integrated Disclosure guidelines, borrowers and buyers must receive their Closing Disclosure at least three days prior to closing.
Find the Lowest Interest Rates Near You
The Consumer Financial Protection Board (CFPB) created in 2011 as a direct result of the housing market collapse of 2008 and the subsequent Dodd-Frank law. Aside from protecting borrowers from significant cost increases between the Loan Estimate and Closing Disclosure, the CFPB is also helping borrowers find the best loans. The CFPB site has a section called, “Explore Interest Rates” that takes data from local lenders and is updated every day. The site also features a “Home Loan Toolkit” that can be used when applying for a loan.
Vanguard Title Facilitates the Closing and Disclosure Process
Most homebuyers still view the home buying process as complicated and stressful, but these new regulations and tools are just beginning to take effect. New home buyers may find the mortgage process far simpler. Vanguard Title has been helping to facilitate the closing process for borrowers, lenders, and realtors for years. For more information on our services, please visit our homepage.