O’Keefe Rivera & Berk is Ready for TRID!
If you are in the real estate field, chances are that you have heard about TRID. TRID just happens to be the most controversial, most anticipated, most feared change to the mortgage lending and real estate closing process in many years.
So what’s the big deal with TRID? First, let’s focus on the acronym made of acronyms. TRID stands for the TIL/RESPA Integrated Disclosure. If you have purchased real estate, you’re probably familiar with the forms required by the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).
Just in case you don’t remember, the Truth and Lending was the standardized form that disclosed the terms and costs of a mortgage loan, such as the origination fee, the APR, the monthly payment, etc. The RESPA, also known as the HUD-1 Settlement Statement, on the other hand, was the rather complex ledger that shows all of the closing costs and disbursements for borrower (buyer) and seller.
The TRID combines these two forms into one bowl, and adds more regulation on top. While the combination of forms is intended to simplify the closing process, the reality is that the TRID forms will be no less confusing than the previous forms to most folks. The reason is simple – the real estate transaction is complicated. There are many parties involved and there are lots of numbers. No form will ever change that.
The most important of the new regulations are waiting periods. For example, the TRID closing disclosure has to be delivered to the borrower at least 3 days prior to closing. Slight changes to the terms of the loan (or closing costs) can cause this 3 day period to start all over again, thereby delaying the closing. As you might expect, even a 3 day delay to a closing can be disastrous.
Suppose for example, your sale is scheduled for a certain day and you are planning to use the proceeds for your sale to purchase a new property. In the past, we would often schedule your sale and your purchase on the same day. Now? It’s probably not a good idea.
With the advent of TRID, it is more important than ever to have an experienced, organized, and prepared real estate attorney handling your transaction. That way, any TRID closing delays that can be avoided WILL BE avoided. Each of the attorneys of O’Keefe, Rivera & Berk, LLC have undergone training in preparation for TRID and we are ready to tackle any TRID challenges that come our way.
Please feel free to contact our office if you have any questions about the impact that TRID will have on your Chicago area real estate closing, or any other real estate matter.