As mid-November is upon us, everyone should be familiar with the new Closing Disclosure/TRID rules that apply to all closings requiring a mortgage where that mortgage was “signed” after October 3rd.
The first of these new closings will be taking place over the next few weeks. At the minimum, real estate agents on both sides of the transaction should know from the Buyer’s lender the following:
1. How many days prior to closing does the lender require the settlement services provider to give them all fees and invoices that will need to be on the Closing Disclosures and Settlement Statement?
2. How is the Buyer’s Closing Disclosure going to be delivered to the Buyer?
3. What day are they going to initiate delivery?
The answers to those three questions will tell you if the lender will be able to make the proposed closing date, and do so in accordance with the new rules.
Important note: most lenders will not automatically share the Buyer’s Closing Disclosure with the Buyer’s Agent, and will not allow the Settlement Services Provider to share a copy either.
Also, remember that the Seller will have their own Closing Disclosure that will be provided by the Settlement Services Provider, who will also produce the Settlement Statement – the only document of the three that authorizes closing and the distribution of funds.
All the documents use the same data, so in almost all cases, a change in one will cause a change in all. Depending on the processes at the individual lender in question, even simple changes may take days. There is almost no room to, “make it happen.” Even more than before, this is a lender driven process.
You can get a PDF of this Title Tip here.