When TRID was originally announced it seemed like it would take forever to arrive at the launch date. I felt like I blinked and forever turned into just a few short days! After attending several trainings, meetings and webinars, Superior Mortgage Lending can confidently say that we are TRID ready! Are you?
Below are a list of tips and frequently asked questions regarding how we will be handling TRID. I hope this helps to prepare you, since let’s face it, TRID is here!
Experts are predicting that closings will be delayed, 60 day loan approvals will be the new normal, and new forms will bewilder buyers. “Expect a one- to two-week delay in closings” At Superior Mortgage Lending we expect NO DELAYS!!! One of our many investors is actually speeding up the process.
TRID Related Terminology:
- TILA-RESPA Integrated Disclosures: New disclosures which will become effective 8/01/15. The combination of the Good Faith Estimate (GFE), Truth in Lending Statement (TIL) and Settlement Statement (HUD-1).
- GFE & TIL = Loan Estimate (LE)
- TIL & HUD-1 = Closing Disclosure (CD)
- TRID: Acronym for TILA-RESPA Integrated Disclosures
- Loan Estimate (LE): A new initial disclosure which combines the GFE and TIL
- Closing Disclosure (CD): The new disclosure, provided to borrowers prior to closing, combines the TIL and HUD-1 Settlement Statement
- Total Interest Percentage (TIP): The new TILA/RESPA disclosure has a term referred to as TIP. The TIP is the total amount of interest a consumer will pay over the loan term as a percentage of the loan amount. The TIP does not replace the APR. The new disclosures will have both the TIP and APR.
Q. What day is considered to be the application date?
A. We will be able to base the application date on either the date that the borrower signed the 1003 or the date that the LO signed the 1003—whichever comes first. Please note that determining whether your loan is subject to TRID is based on the date you create documents and not the signature dates used to define application date.
Q. Will pre-locks be allowed?
Superior Tip: Once you have imported your file, you will have the opportunity to lock your loan. We have a new process that will allow you to lock the loan prior to entering any fees or generating documents. Even better, you can still use a 30 day lock! Now that’s lending made easy!