TRID and CFPB - A Discussion with NOVA Home Loans

Posted by Peak Realty on Tuesday, October 27th, 2015 at 4:38pm.

"I'm a big believer in working with local businesses. If I was a buyer purchasing my first home, I'd want to be face to face with know you have some skin in the game, and that you're accountable to me."

- Cheryl Braunschweiger

Branch Manager, NOVA Home Loans

Listen to interview w/ Cheryl Braunschweiger at NOVA Home Loans & Keelan McCamey, Realtor at Peak Realty for information on the new TRID rules.

Key Takeaways:

  • In an effort to prevent situations like the housing crisis from happening again, there are new disclosure rules for lenders that require them to disclose certain loan information to buyers 
  • There are two new forms:  The Loan Estimate (LE) and the Closing Disclosure (CD). The new disclosure rules are part of the "Know Before You Owe" law, to better inform borrowers of their lending obligations with their lender
  • There's a new organization called the Consumer Financial Protection Bureau (CFPB) that ensures that the new rules are enforced
  • Communication among the lender, title company, real estate agents, inspector and appraiser must be done at a higher level
  • For every deal, real estate agents should familiarize themselves with the lender's approach to delivering the Closing Disclosure to the buyer (i.e. does the lender use electronic opt-in at the time of application, or do they use the mailbox rule requiring more advance notice for the CD?)
  • Agents: Be careful with simultaneous closings...depending on the circumstances, consider doing a rent-back or closing on the second home the next day
  • Lenders may err on the side of caution and choose to extend a closing date, even when it's not necessarily in the best interests of the parties in an attempt for lender to avoid potential fines/penalties by the CFPB. Advance planning with contract dates, coordinating with all parties, and communicating expectations upfront surrounding TRID deadlines
  • Review the Closing Disclosure with the buyer!  Make certain that the buyer has given their agent permission to preview this document  

The new TRID rules, otherwise known as the "Know Before You Owe" lending rules enforced by the Consumer Financial Protection Bureau, are in place to better inform buyers of all aspects of the loan product they've selected, as well as receive a Closing Disclosure at least 3 days prior to the closing date. These new rules are at the federal level, and will impact real estate closings across the United States.   


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