Attention everyone! This notice includes Attorneys, Settlement Agents, Lenders, Real Estate Agents, and etc! It’s time that we all get together and become close friends.
TRID calls for Communication, Planning and forming new Relationships.
I have already written about the changes coming to closings, but this new law is such a paradigm shift, I had to write in more detail on the topic.
I have met with many realtors and they are all very concerned about how things are going to go down after October 3, 2015. They have every right to be concerned, but with team work, we will all get through this process together. Change is good!
Every person in the industry will have to wear each other’s respective hat in order for this to go smoothly. It is important to be aware of the impact on each team member in order to understand the impact on yourself.
For example, real estate brokers and agents will be greatly affected by the new laws.
Realtors are going to be pressured in their positions as agents for the buyers. Although, if the buyer’s attorney is prepared they can relieve the real estate agent of some of its responsibility. In my opinion, I am preparing my firm to work closely with real estate agents to coach our client, the buyer, on how to act during the course of the transaction and also, keeping up with the important dates and events that are triggered by the rule.
Examples of why the agents will become more responsible over their buyer clients are as follows: the rule requires the consumer to communicate to the lender quickly about changes that impact the transaction or new choices made by the buyer. The agent will have to schedule more inspections or walk throughs and will also have to engage in negotiations during the time between the contract and closing versus at the closing table.
Speaking of closing, although closing disclosures are to be received by the client 3 days before consummation of the loan transaction, the disclosure will have to be received by the lender 6 days before consummation. The real estate agent will not be able to receive the closing disclosure unless they get consent in writing and signed by their client. This writing will have to be submitted to the lender. Both attorneys and real estate agents will not receive the closing disclosure until the buyer receives it.
It is highly encouraged that any and all negotiations are handled at least a week and before closing. Although, in almost all cases, the CD can be corrected at or after the closing within 30-60 days depending on the terms needing adjustment.
Truly, we are all equipped to embrace this change. It all comes down to our ability to communicate and the flow of information.