What Do You Need to Know About Recent Changes to Lending Guidelines?

    Today, we’ll be discussing the basics of the new TRID closing process with the best real estate closing attorney in Madison County, Craig Paulus! We’ll learn about the new closing disclosures form and what changes we can expect when it comes to the closing of your transaction. Whether you’re selling or buying, TRID impacts every transaction and we want to keep you informed of this new process.

    TRID is an acronym that stands for Truth in Lending Act (TILA) Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure. It sounds a lot more confusing than it is. When you apply for a loan, they throw a lot of paper at you. In all that paperwork, there are a couple of important disclosures: the Truth in Lending Act disclosure and the estimate. This happens early in the process. Near closing, you’ll receive a final Truth in Lending Disclosure and a Settlement Statement called the HUD-1.

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    Since 2010, the Consumer Financial Protection Bureau has been working to combine the HUD-1 and the Truth in Lending Act Disclosure. TILA and RESPA have a very similar framework with initial disclosures, final disclosures and tolerance for any changes. The new framework now includes a very regimented and structured time table in order to ensure lenders comply with deadlines and the process as a whole in order to ensure borrowers are protected.

    These new changes have been the hardest on lenders; there is nothing to worry about if you’re a consumer. It has caused minor hiccups in the process as everyone is still getting used to the new rules. However, it’s great for buyers and sellers because they obtain crucial information earlier in the process. On page one of the new paperwork, you can see your interest rate, your payment, and how much you need to bring to closing!

    The idea of TRID is to make buying and selling homes a whole lot easier for the consumer. It’s new and confusing at times, but we have a team that has studied it inside and out and we would love to help you today!

    If you have any questions about changes to the lending process, or if you need real estate assistance of any kind, please don’t hesitate to reach out to us. We would love to hear from you!

    This Week’s Closings, Congratulations!

    • Rocket City Redevelopers, LLC
    • Mr. and Mrs. Joseph Pocopanni
    • Ms. Emily Georgiou
    • Ms. and Mrs. Justin Baker
    • DBPS Holdings, LLC
    • Mr. Michael F. Lawrence
    • Ms. Linda K. Llamas
    • Stone Financing LLC
    • Mr. and Mrs. Rashard Brooks
    • Mr. Eric Meade
    • Mr. and Mrs. Xavier Thigpen
    • Ms. Michelle Adams
    • Mr. Dean Bekken
    • Mr. and Mrs. Nicholas McGlathery
    • JS2 Properties, LLC
    • Mr. Tim Johnson
    • Mr. Michael Chandler
    • Mr. Edwin Stromberg
    • Mr. and Mrs. Richard Anthis
    • Mr. and Mrs. Brian Griffin
    • Mr. Justin Allen
    • Mr. and Mrs. Don Fleming
    • Ms. Jeronima Sanchez
    • Mr. Terry Wright and The Oasis Group
    • Ms. Rebecca Wilkenson
    • Mr. Delroy Brown
    • Mr. and Mrs. Steven Bray


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