Integrated Mortgage Disclosure Rule (TRID) for the Broker
- New Closing Disclosure (CD) replaces the Truth-in-Lending Disclosure and the HUD Settlement Statement.
- New 3 business-day waiting period after delivery of the final Closing Disclosure to the Buyer. Closing cannot occur until the 3rd business day from receipt by borrower of the CD.
- Borrower is deemed to have received the CD on the third business day after mailing if sent via US mail, or on the day of receipt if hand-delivered. If sent by another means of delivery, receipt is deemed to be the day the Lender obtains verified receipt from the Borrower that s/he has received the CD.
- New 7-day waiting period after delivery of the Loan Estimate (LE) to Buyer. Closing cannot occur until the 7th business day. Changes in loan products, closing costs and the like will necessitate the issuance of a revised LE.
- There is a likelihood that the standard 30- and 45-day rate lock period will not be long enough for a Lender to complete underwriting and close a transaction. Buyers may want to consider 60- or 75-day rate locks.
- The timing of closings are affected due to the 3- and 7-day review requirements – There will be no quick closings after a Lender issues their “clear to close” and back-to-back transactions will be more difficult to orchestrate.
- Last minute adjustments between Buyer and Seller could impact the need for a corrected CD and require a new waiting period. Inspection items and other issues between Buyer and Seller should be addressed and resolved in advance of the closing.
- Buyers must avoid making any major changes to their financing terms within 2 weeks of their closing.
- Purchase & Sale Agreements will have to be re-structured to protect both the Buyer’s and the Seller’s interests, and the expectations of both Buyer and Seller will have to be adjusted.
We have prepared a checklist to help your transaction comply with the new TILA-RESPA Integrated DISCLOSURE Rule (TRID). Please send the following items to the closing attorney’s office no later than 10 days prior to the closing date:
Broker Commission Statement
Final Water Reading
Final Sewer (if applicable)
Broker Reimbursements (please specify amount and description)
Also, remember to provide prior to closing:
Smoke and Carbon Monoxide Detector Certification
Title V Inspection Report or Certificate of Compliance