TRID implementation is only one month along. Chances are, real estate attorneys who don’t routinely handle real estate closings still have questions about the process and how they can best manage the transition.
The TILA-RESPA Integrated Disclosure (TRID) rule went into full effect on October 3, 2015. TRID does much more than introduce new forms to the process, however; it changes the entire way real estate transactions are administered. What can settlement agents and attorneys do to transition to the changes and facilitate transactions?
3 Ways Real Estate Settlement Attorneys Can Facilitate Transactions Under TRID
- Learn the forms. There are two primary new forms under TRID: the Loan Estimate (LE) and the Closing Disclosure (CD) forms. These two forms replace the old Good Faith Estimate (GFE), the early Truth in Lending (TIL) form, the HUD-1, and final TIL forms. The new forms provide borrowers with information about their estimated monthly loan payment, the costs associated with obtaining a mortgage, and other details about fees associated with the loan. However, they are not to be used for every type of real estate transaction. Settlement agents need to know which forms to use for which transaction, and should become familiar with the new forms so they know how to fill them in correctly.
- Learn the timelines. Timeframes are tighter and stricter under TRID. The Loan Estimate must be provided to borrowers no later than 3 business days after the borrower has provided 6 key pieces of information – name, income, SSN, address of the property for the loan, estimated value, and the mortgage loan amount sought. Lenders are responsible for providing the LE to borrowers. The Closing Disclosure form must be provided to borrowers at least 3 business days before the closing. Either the lender or the closing agent/attorney will be responsible for providing the form to borrowers. If any changes are made to the CD, the borrower receives an additional 3 days to review the revised form.
- Steps to manage the process. Lenders are responsible for many of the new requirements under TRID, but there are several areas in which closing attorneys can help manage the process:
- Become familiar with the new forms so you can answer client questions.
- Keep the new timeframes in mind when providing the Closing Disclosure to borrowers.
- Understand the new time limits and adjust your workload. Don’t promise quick closings; they can take as much as 10-14 days longer to close for the time being.
- Encourage clients to submit their loan documentation as soon as possible to keep the process moving.
- Avoid last minute changes as this will delay the closing.
- Encourage clients to ask their questions, arrange walkthroughs, and make changes before the Closing Disclosure has been issued. Changes after this time will result in delays.
- Keep communication lines open between your office, the lender, and the client so that everyone has the information they need to keep the process moving forward.
Stay On Task With Easy Soft
Easy Soft’s EasyRealEstate Suite can help real estate attorneys manage closings under TRID. The suite has been updated to reflect TRID changes and requirements. Most notably, the new Closing Disclosure forms are available in the newest software addition, EasyCDF.
The EasyRealEstate Suite is a complete software solution to help real estate attorneys manage TRID-compliant closings in-house, even if they don’t do them every day. Alerts, notifications, and built-in safeguards ensure you never miss a step and always complete the forms accurately and on-time. There has truly never been an easier way for attorneys to manage real estate closings!
EasyCDF and the EasyRealEstate Suite are available for immediate download at www.easysoft-usa.com or by calling Easy Soft 1-800-905-7638.