Introducing CFPB & TRID

If you are not in the retail mortgage business and are not a residential real estate professional  it is doubtful that you have ever heard of the Consumer Financial Protection Bureau (CFPB) or the Truth in Lending Act  – Real Estate Settlement Procedures Act –   Integrated Disclosure (TRID) rule.  That said if you plan to buy and or sell real estate moving forward the CFPB and TRID could certainly have an impact on the process. “Know Before You Owe” is the focus that the CFPB had in mind in enacting the TRID rule which goes into effect as of today.  In an effort to improve, simplify, and make easier to understand for the consumer, the disclosure of mortgage transaction particulars the TRID rule defines two critical forms and timetables; the Loan Estimate, which now must be provided to the consumer within three business days following loan application and the Closing Disclosure, which must be provided to the consumer three business days before closing of the associated real estate transaction. Sounds simple enough? The scary part for the professional real estate agent is the expectation that the Closing Disclosure, the replacement for the venerable HUD-1 Settlement Statement, will be available three business days prior to your scheduled closing. If is it not, for whatever reason, or if there is significant last minute change to the loan parameters  then we reschedule closing and so begins the domino effect. Given an industry history in which we have felt blessed to have a HUD-1 finalized between the lender and title agent any more than a few hours before our scheduled closing we are taking a wait and see attitude as to how this new requirement will play out; we will keep you posted.  It the meantime we suggest that it is more critical than ever that as a buyer you select a real estate agent, a mortgage lender and a title agent that are prepared to cooperate effectively under these new requirements.

Remember whether buying or selling, moving up or downsizing, Lincoln or Omaha, the Vaccaros; Paul & Susan, stand ready to assist you, your family, friends and co-workers. Call or email us today! Lincoln (402)817-0355 , Omaha (402)577-0820, (Paul & Susan Vaccaro – CBSHome Real Estate 15950 W Dodge Road, Suite 200, Omaha, NE 68118 – Woods Bros Realty 3737 S 27th Street, Lincoln, NE 68502.

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