Today we'll talk about some new guidelines that will impact the mortgage and real estate industries: TRID and KBYO. TRID stands for Tila-Respa Integrated Disclosure. KBYO stands for Know Before You Owe. These new guidelines were put in place by the Consumer Financial Protection Bureau to help the consumer be more informed when you're doing a mortgage and real estate transaction.
TRID will be effective for applications beginning after October 3, 2015. The first big change will be with the paperwork. The good faith estimate and the truth in lending document will be combined in one document called the loan estimate. Not only does combining the documents keep the buyer more informed, but it also simplifies the process by creating less paperwork for the buyer to keep track of.The next big piece of TRID is that you, the buyer, have to receive the final figures three full days before closing. If the figures are mailed to you, you have six days; three days for the mail, and three days for review. Right now, a lot of transactions come right down to the last minute. With TRID, there's no more last minute. You have three days to look over everything.
Lastly, when you get to the closing table, you will no longer get a HUD statement. Instead, you will receive a closing disclosure. The HUD settlement statement documents all the transaction figures: what the seller receives, what the buyer's costs are, and so on. The closing disclosure still informs the buyer, but it's easier to understand.
There's a lot of changes up ahead, and I'm sure you have some questions. Please feel free to give me a call or send me an email. I'd be happy to help you.
TRID Frequently Asked Questions
TRID - The Closing Disclosure (CD)
TRID - The Loan Estimate (LE)
