On October 3rd the new TRID (Tila-Respa Integrated Disclosure) rules went into effect for all residential loans with application on or after that date. Delayed closings are an imminent reality due to the timing requirements of the new rules. In general the new rules are good for consumers and make the process a bit easier to understand for those that don’t obtain mortgages on a regular basis.
So why the delays? Under TRID the lender is required to issue a closing disclosure once all parties are certain that specified fees will not change. Many lenders won’t issue that closing disclosure prior to the loan being cleared to close. The borrower then has 3 days to review that disclosure prior to closing the loan.
When you add the time to disclose – for non-electronic disclosures – and the time for review, the closing can be pushed as much as 7 business days fromt the clear to close. Prior to this rule, mortgage brokers could close a loan the same day as it was cleared.
At Victory Funding in Malta, NY – Saratgoga County, we are ready for the new disclosures and we are working with several lenders to make sure your mortgages close quickly and painlessly in today’s tough regulatory environment.
