As you may have heard, on August 1, 2015 a new RESPA/Truth in Lending Act integration rule, often referred to as “TRID”, goes into effect that significantly changes the settlement process. The final rule integrates existing disclosures with new requirements from the Dodd-Frank Act to improve consumer understanding of the mortgage process, aid in comparison shopping, and help to prevent surprises at the closing table.
Update: CFPB proposes to change TRID effective date to Oct. 3
The Consumer Financial Protection Bureau today issued a proposed amendment to the Know Before You Owe mortgage disclosure rule, which changes the rule’s effective date to Oct. 3, 2015. There will be a period for public comment until July 7 before a final decision to move the date is made. Stay tuned for updates and additional details on the changes to come.
The major changes the rule implements include:
- New “Loan Estimate” (LE) form replaces Good Faith Estimate (GFE) and initial Truth-in Lending disclosure; must be given to consumer within three business days of application
- New “Closing Disclosure” (CD) form replaces and combines the HUD-1 and final Truth-in-Lending disclosures; must be received by consumer three days before consummation of loan
National Association of REALTORS® Resources
Since the rule was finalized at the end of 2013, NAR has been educating members about how it will impact their business through webinars, forums and articles. To ensure that members can find this information all in one place, NAR has created a RESPA/TILA Integration resources section at www.realtor.org/respa.
Some of the resources members can find at the webpage include:
- Flyer: Overview of Changes to RESPA/TILA Disclosures
A one page document which provides an overview of the changes to the RESPA/TILA disclosures.
http://www.realtor.org/articles/overview-of-changes-to-respa/tila-disclosures - Video: HUD-1 Going Away: Understand New Closing Forms, Procedures
A video which walks members through the new settlement process
http://www.realtor.org/videos/hud-1-going-away-understand-new-closing-forms-procedures - Webinar: RESPA/TILA Integration Update
A detailed webinar with RESPA attorney Phil Schulman on the upcoming changes to the RESPA/TILA disclosures.
http://bit.ly/1bwc0TJ - RESPA Webinar Hosted by CFPB and Federal Reserve
The Consumer Financial Protection Bureau and the Federal Reserve hosted a webinar on changes coming to the closing process and forms beginning August 1.
http://www.webcaster4.com/Player/Index?webcastId=8180&uid=709162&g=59343803-6f45-40b3-9613-7a31a083a38d&sid - Video: Window To The Law: TRID Changes Coming
Finley Maxson, NAR’s Senior Counsel, discusses the integrated disclosure forms created by the Consumer Financial Protection Bureau and the new requirements that will affect real estate transactions, including changes to the form contracts created by associations.
http://www.realtor.org/videos/window-to-the-law-trid-changes-coming
North Carolina Association of REALTORS® Resources
- Webinar: The Demise of the HUD-1: Will You Be Ready August 1st?
On May 13, NCAR Legal Counsel Will Martin facilitated this webinar with presenting attorneys Kim Rosenberg and Elizabeth Harrison. They discussed changes to the HUD-1 closing statement, the Truth In Lending disclosure and the Good Faith Estimate.
https://youtu.be/RXz5x1Vsl50
Source: North Carolina Association of REALTORS®