Everybody loves acronyms right? If you are in the real estate industry this acronym that has been everywhere in the past 9 months may have you running scared. Things can be scary when you don’t understand them so we wanted to put out a quick article to explain to both home buyers, Realtors and other industry professionals what TRID is really all about, and how we specifically will be working with it.
Although it may sound more like the name of a power ranger bad guy TRID stands for the TILA-RESPA Integrated Disclosure Act… and when you break it down it actually is a lot more good than bad. At its core the act makes things easier for everybody by combining four existing disclosures into just two. To look at the good that is being done here in another way that’s at least 2 pieces of paper for every mortgage that won’t have to be printed. Considering the amount of loans written every day in the US, that’s a whole lot of trees.
The two new combined forms include:
The Loan Estimate which must be delivered or mailed at least 3 (business) days after receiving a consumers mortgage application and the Closing Disclosure which must be delivered to the borrower at least 3 (business) days prior to closing.
Many people are stressing about new deadlines that HAVE to be hit, but we are looking forward to these changes because at the end of the day what TRID is really doing is mandating better teamwork and communication for everybody involved in the home buying process.
Communication has always been one of our strongest assets and combining this with less paperwork seems like a win-win for everyone. Yes, as with any change it will take some getting used to, but the new Oct 1 deadline gives everyone ample time to prepare.
If you already work with Treadstone not much will change, we will continue to provide the same great communication and customer service that you love. If you haven’t worked with us yet we look forward to showing you the real time communication and common sense lending that we practice every day.
**Treadstone Funding is a division of Neighborhood Loans Financial Corp. Additional information on TRID can be found here.