So what is TRID?
It is ‘TILA/RESPA Integrated Disclosure’ rule, also known as TRID. Since this rule is designed to help borrowers understand the terms of their home financing transaction, there is a trend to start referring to this rule as the Know Before You Owe rule instead of TRID. The Know Before You Owe rule took effect October 3, 2015. Follow link below to see and print out forms,
http://www.consumerfinance.gov/know-before-you-owe/
What it means for the borrowers?
When the borrower starts first shopping various lenders for a loan they receive a ‘loan estimate’ (they can receive many of these to compare lenders). Once they make a decision and choose the lender they then they will receive a ‘closing disclousure’ 3 days in advance for review. It all the terms are agreeable and no changes need to be made, after the 3rd day docs can be drawn.
A new Closing disclosure has taken the place of the TIL (Truth and Lending) and The HUD (Settlement statement). This new disclosure has everything regarding the borrowers loan. Please refer to attached sample. The borrower is supposed to receive the Closing Disclourse (or Cd as we have named it) within 3 days of the docs being drawn. This is mandatory. There is now no surprises at the signing table. Keep in mind some title and escrow companies still use a HUD-1 in conjunction with the new CD. I have noticed this with purchases.
What this means for the notary signing agent? For us this means less delays in getting the documents and less questions at the table. The borrower is now already aware of the numbers and terms. The signings go much faster.
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You might also like:
Ken’s tips for the closing disclosure
http://blog.123notary.com/?p=17116
The closing disclosure itemized
http://blog.123notary.com/?p=16217
Index of information about documents
http://blog.123notary.com/?p=20258
The 30 point course – a free loan signing course
http://blog.123notary.com/?p=14233
Excellent explanation of the newish law.
Comment by R. L. Scherrer — February 14, 2017 @ 2:12 am
Hi Carmen – Good general explanation. Unfortunately, the Closing Disclosure does not always match what they received in their email 3 days in advance. This necessitates a phone call many times, resulting in even more correspondence in the borrower’s email. They have to print it and then we review and sign. This is not speedy, but time-consuming. Sometimes, the borrower does not receive the CD at all, and then we are on the phone spending more time. It’s weird, but it’s still not a perfect world. Week before last, I had two CD’s that did not match the borrower’s printed out CD. You guessed it, more calls to the LO. Before that, it was Settlement Statements, so really, not much has changed except the print is bigger – which I like! 🙂
Comment by Ralph Wedertz — May 1, 2017 @ 3:06 am
I have found on several signings that the Signers had received their CD, but not reviewed it. When I get docs in time to review, I also ask if the Signers have completed their review of the CD before we meet, so they can be sure all their questions have been answered, and they are aware of the cash to close due, when it applies. I still have calls going to the Loan Officers, but a lot less when I remind then to review before we meet.
Comment by Rose Wylde — May 2, 2017 @ 1:26 am