Sky Falling TRID Coming?

sky falling

Who is afraid of TRID?

Will it delay my closing?

The answer is NO for just about everybody.

When the Know Before You Owe mortgage disclosure rule becomes effective, lenders must

give you the new, easy to read disclosures about your loan three business days before closing.

 Think of it as a lemon law to check and review before the last minute.

This gives you time to review the terms of the deal before you get to the closing table.

Many things can change in the days leading up to closing. Most changes will not require

your lender to give you three more business days to review the new terms before closing.

The new rule allows for ordinary changes that do not alter the basic terms of the deal.

Only THREE changes require a new 3–day review:

1. The APR (annual percentage rate) increases by

1/4 of a percent for adjustable loans.1

A decrease in APR will not require a new 3-day review if it is

based on changes to interest rate or other fees.

2. A prepayment penalty is added, making it expensive to get out of the mortgage to sell or refinance lower.

3. The basic loan product changes,

Such changing from a thirty year fixed rate to adjustable rate 

or say a fixed to an interest only. 

These would be big changes to the loan long term.

1 Lenders have been required to provide a 3-day

review for these changes in APR since 2009.

NO OTHER changes require

a new 3–day review:

There has been much misinformation and mistaken

commentary around this point. Any other changes

in the days leading up to closing do not require a

new 3-day review, although the lender will still have

to provide an updated disclosure.

Sometimes Chicken Little Yelling that the Sky is Falling

requires cool heads, planning, organization and not a

foil chicken helmet

The following situations do not require a new 3-day review:

􀂃 Unexpected discoveries on a walk-through

such as a broken refrigerator or a missing stove,

even if they require seller credits to the buyer if nominal.

􀂃 Most changes to payments made at closing,

including the amount of the real estate Commissions, taxes, 

pro-rations for utilities and amounts paid into escrow impounds.

􀂃 Typos found at the closing table.

Spelling errors, okay that's pretty common sense