How the TRID Closing Disclosure Delivery Period Works
The new TRID rule has very strict requirements as to the delivery of the Closing Disclosure. The Closing Disclosure must be delivered to the borrower at least three business days prior to the consummation of the loan. If the Closing Disclosure is hand delivered, a waiting period commences which we’ll discuss further in a later […]
Making a Smooth Transition to the New Closing Disclosure Form
As the real estate community makes the transition to the new rules and new forms set forth by the CFPB beginning August 1, there will be a period where existing escrow transactions will use the HUD-1 Settlement Statement and new transactions will begin using the new Closing Disclosure Form.
The Loan Application Date is the Determining Factor
The key factor in determining which form will be used is the date of the loan application.
In other words, transactions with loan applications made before August 1st will use the HUD-1 Settlement Statement and transactions with a loan application date after August 1st will use the new Closing Disclosure.
CFPB – The New Loan Estimate In Plain English
The new Loan Estimate form replaces the early TILA disclosure and the Good Faith Estimate. It lists all the potential costs for the consumer’s loan like title insurance, percentage rates, closing costs, and the estimated monthly loan payment.
Creditors are responsible for calculating the best estimates possible for these services, which will be checked against the actual costs listed in the Closing Disclosure form when the loan is consummated. And unlike the former Good Faith Estimate, creditors can no longer revise and re-disclose if charges go up or down prior to closing.