1. The new Closing Disclosure ﴾AKA TRID﴿ rules apply only to closings involving a mortgage “signed” after October 3rd, 2015. Any deal with a mortgage “signed” prior to that date will be conducted under the prior rules and will use the 2010 HUD‐1. When in doubt, ask the buyer’s lender. That means that you won’t actually see the new rules’ impact at the closing table until late November.
2. The process for cash closings are not impacted except that, depending on your settlement service provider, the new American Land Title Association ﴾ALTA﴿ Settlement Statement may be used as the document to conduct the closing as opposed to the 2010 or 2007 HUD‐1 they used in the past for cash closings.
3. The driving force on when the closing will take place will be the lender.
4. The HUD‐1 will be replaced by at least three documents; the Buyer’s Closing Disclosure ﴾CD﴿, the Seller’s CD, and the ALTA Settlement Statement.
5. The Buyer’s CD and its delivery will be done in most cases by and will be the responsibility of the lender, not the settlement services provider. The settlement services provider will be responsible for the Seller’s CD and the ALTA Settlement Statement.
6. Buyers must have possession of their CD 3‐days prior the closing, i.e. if closing Thursday, must be in the buyer’s hands the Monday prior.
7. Most lenders will utilize the “mailbox rule” to allow three days for delivery of the CD prior to the 3‐days disclosure. That works out to it being “in the mail” one week prior to closing. That requires 10‐days prior for all costs to be in.
8. For planning purposes, the 10‐days outlined above for delivery of all invoices etc that need to be on the CD to the settlement services provider should be considered a minimum. Some major lenders are requiring costs to them 14‐days prior. That equates to 15‐days prior to closing for to your settlement services provider.
9. Some changes in the loan product may re‐trigger the 3‐day disclosure, but depending on the lender’s internal processes, even minor changes may take days to correct if they come after the “must deliver” date given by the lender. These can cause non‐waiverable delays in the closing date.
10. If you have not already, get trained in the details of the new closing process. Our final “just in time” training sessions at Watson Realty Corp.’s corporate training room are selling out. October 7th sold out in one day, and the session on the 14th only has 10 seats left. If you cannot receive training in person, you can also get an overview of the process via a series of training videos at Watson Title Services of N FL’s youtube page. Just head on over to youtube and search for our name, and it will take you right there.
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My Agent Greg 