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We’re Prepared for the Changes.
CFPB: Consumer Financial Protection Bureau | TRID: Truth-in-Lending, RESPA, Integrated Disclosure
First Integrity Title is ready! As a title company we are ready and fully prepared for the upcoming changes taking place October 3rd. Our escrow staff is up to speed on how the changes will affect you at closing and we are ready to help you through it.
1. NEW FORMS: No more HUD-1 or Truth In Lending (TIL) – these will be replaced by a “Closing Disclosure “ and a “Loan Estimate” form, all of which must be delivered to the consumer by the lender 3 days prior to closing.
2. “ADDITIONAL PROVISIONS”: As a Selling Agent, be prepared to include an additional provision in the contract providing an automatic extension to the closing date for any closing delays caused by the lender for CFPB reasons.
FAQ’s About TRID Under CFPB Changes
Q: Who Will Monitor Compliance?
A: The lender is solely responsible for compliance with the new rules.
Q: When will the Loan Estimate (LE) clock start?
A: The Loan Estimate needs to be delivered within 3 days of the lender having borrower’s: name, Social Security Number, address, income, approximate value of the property, and loan amount.
Q: When does the Closing Disclosure (CD) need to be delivered to the borrower?
A: A week prior if delivering by mail, otherwise 3 days prior to closing.
Q: Is Saturday counted as a business day for delivery of the Closing Disclosure?
A: Yes, Saturday is counted. See three day disclosure rule below.
Q: Do both agents receive a copy of the Closing Disclosure?
A: As the settlement agent we cannot provide the Closing Disclosure to the agents unless the lender authorizes us to release it to both agents. We can provide the agents the settlment statement instead.
Q: Will a re-disclosure be required if the seller’s side changes?
Q: Is electronic delivery adequate for the 3 day Closing Disclosure deadline?
A: Yes, if the documents comply with the e-sign act and prior consent has been given.
Q: How Else Can I Prepare?
A: Track progress during the transaction and focus on maintaining regular contact with lenders, providers, etc. Keep your business partners up to speed on any material changes.
Three Day Disclosure Rule
Notes: If a federal holiday falls in the three day period, add a day for delivery.
The three day period is measured by days, not hours.
Thus, disclosures must be delivered three days before closing, and not 72 hours prior to closing.
Disclosures may also be delivered electronically on the disclosures due date in compliance with the E-sign requirements.