Saturday, October 3, 2015

New TRID rules: What you should know

 

New guidelines go into effect Saturday, Oct. 3rd


Today marks the first day of a new era in mortgage lending: It's the rollout of the new federal TRID rules intended to make the mortgage process more plain and transparent for borrowers.

TRID, which stands for TILA RESPA Integrated Disclosures, is the brainchild of the Consumer Financial Protection Bureau as mandated by the 2010 Dodd-Frank banking reform act to help consumers better understand the application process and terms of their mortgage loans.

The primary changes include implementing a Loan Estimate and Closing Disclosure at the beginning and end of the application process, respectively. These disclosures will replace the Good Faith Estimate and HUD Final Settlement Statement in an effort to more clearly explain mortgage terms. All mortgage lenders and brokers will be required to disclose each of those forms within a three-day period so the borrower has time to understand the terms.

At Vertex, we will be complying with the new regulations fully in accordance with the official Oct. 3, 2015, start date. Many lenders will provide their own LE (Loan Estimate) and CD (Closing Disclosure) forms, which will be provided to borrowers for review within the mandatory three-day periods. It is always our goal to assist borrowers in completely understanding the mortgage process and loan terms, as well as to help you achieve your specific financial goals.

As with any change, there is bound to be some confusion over changing guidelines. Should you have any questions about how this affects your mortgage application process, please do not hesitate to contact a Vertex loan advisor or processor by email or calling toll-free 877-939-0339.

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