WInston Trails homes for sale


Protecting the consumer?

The Consumer Financial Protection Bureau just (Oct 3rd) instituted new regulations affecting the closings of every home sold via a mortgage…and, as is expected when the govt. gets involved with something these new regulations are making it harder and more complex on the consumers.
In short, some of the hardships and delays that will be caused by this are: longer closing times, no more simultaneous/consecutive closings, unplanned closing delays, just to name a few.
It is called TRID…and below is some information disseminated to us on the subject.
consumer protection

What information should the parties be given about TRID?
All parties in a real transaction must adapt to these changes. As soon as practical, the fact that the loan process will take more time and probably be more cumbersome, at least at first, should be communicated to the parties.
The Mortgage Banker's Association has created a document, Changes to the Mortgage Disclosures and Closing Process, that's designed for buyers and can be provided by you to help familiarize them with the "new normal" loan process.
Additionally, buyers should be advised that requested changes or underwriting decisions made late in the transaction could delay the closing.

Negotiate longer periods of time for transactions
Experts are advising real estate licensees to build more time into the contract for buyers to obtain loan approval and longer periods of time to close the transaction when TRID applies. The lenders must follow a lot of new rules, and new loan processing could take more time than it did in the past, at least at first.

Negotiate shorter periods of time for contract details
Because closing agents need information earlier than they did before in order for lenders to prepare and deliver the Closing Disclosure, consider requiring inspections, repairs, evidence of title and surveys to be completed and delivered earlier in the process.

Communicate earlier in the process
Talk with the closing agent as early as possible about costs, expenses, credits, etc., needed to prepare the Closing Disclosure. The closing agent must provide the closing numbers to the lenders at least two weeks before closing in order for the lenders to prepare the buyer's Closing Disclosure on time. This also holds true for any contract amendments. Get them to the lender as soon as they're fully executed.

Earlier walk-throughs
Many people have suggested that the parties would benefit from providing an earlier walk-through of the property to confirm needed repairs have been made. This could theoretically avoid last-minute repairs or contract amendments, credits, etc.This will require the likelihood of two walk-throughs, with the second one still occurring the day before/of closing to confirm the condition of the property.

Avoid simultaneous closings
The concern: This will involve multiplying by two the anticipated complexities TRID will likely cause, and the second transaction may fail if the first closing does not occur.

Preparation and delivery of buyer's Closing Disclosure
When a buyer is using a lender, the lender prepares the buyer's side of the new Closing Disclosure. The buyer must receive this document three business days before the scheduled consummation of the transaction (before the buyer becomes obligated on the loan).
For purposes of providing the Closing Disclosure, a business day is any day except Sundays and federal holidays. Where the lender is either emailing or mailing the Closing Disclosure to the buyer, it must be done 7 days in advance of the closing to meet TRID's delivery requirements.

Last minute changes that require a new 3-day waiting period
Under TRID, if the loan product changes, a prepayment penalty is added or the APR changes (as defined by TRID) after a Closing Disclosure has been delivered to a buyer, then the Closing Disclosure must be corrected and a second (new) three day re-disclosure period must pass prior to the buyer becoming obligated to the loan.

Last-minute changes that should not require a new waiting period
Some other changes can be made to the Closing Disclosure without creating a new three-day waiting period if the lender is willing to fund the loan.

Seller's Closing Disclosure
The closing agent prepares the seller's Closing Disclosure, submits it to the lender for review, and the lender ultimately gives it to the seller.
Reminder: It's more likely you'll review a closing statement (probably not the Closing Disclosure) the closing agent prepares for the parties to sign at closing, and from which the closing agent actually disburses. You are encouraged to speak to the closing agents you work with in your markets to confirm their plan on using a closing statement – and their intent to share them with you.

The above are only a few of the new requirements/changes that are now in place.

If your home is for sale or you are considering selling your home (or you are buying a home) MAKE SURE that your agent is aware of all TRID related requirements and possibilities for delays.

Thanks for reading,
Steve Jackson
561.602.1258, Email me
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