What is TRID?

TRID

What is TRID?

TRID stands for TILA-RESPA Integrated Disclosure. TILA stands for Truth in Lending Act, and RESPA stands for the Real Estate Settlement Procedures Act. That still doesn’t answer your question, does it? So, what is TRID?

TRID refers to the new integrated disclosures for real estate transactions implemented by the Consumer Finance Protection Bureau (CFPB).  On August 1st of 2015, the CFPB is consolidating existing mortgage disclosures from four forms, to two forms. The CFPB is integrating the Good Faith Estimate (GFE) and Early Truth in Lending (TIL) into one document called the Loan Estimate (LE). The HUD-1 and Final TIL will be integrated into one document called the Closing Disclosure (CD). UPDATE as of 6/25/2015: The CFPB will be issuing a proposed amendment to delay the effective date of the TRID until October 3, 2015. Review the CFPB news release here.

TRID Effective Date

The newly created TRID disclosures will apply to most closed-end consumer loans for which an application is received on or after August 1st. UPDATE as of 6/25/2015: The CFPB will be issuing a proposed amendment to delay the effective date of the TRID until October 3, 2015. Review the CFPB news release here.

What TRID Means for Consumers

TRID will reduce paper work and consumer confusion by using clear language meant to help consumers better understand the complicated mortgage loan process. The new forms will highlight information that consumers have indicated are most important including: interest rate, monthly payment and total closing costs. TRID will also provide more information on the cost of taxes and insurance and how interest rate and payments may change in the future. The TRID will also make cost estimates consumers received for services required to close the loan more reliable and require mortgage lenders to provide the CD three business days before closing on mortgage loans. Visit the CFPB website to read What the new simplified mortgage disclosures mean for consumers

How TRID Will Affect Realtors

One aspect of the new integrated disclosures rules that will affect Realtors is that there are new time-sensitive delivery requirements for Closing Disclosures. The consumer must receive the Closing Disclosure a minimum of three business days before closing (date note is signed). In addition, there are certain changes to the loan file that can require a re-disclosure and a new 3-day minimum waiting period – changes to APR, loan product or the addition of pre-payment penalties are examples. Watch this video posted on the National Association of Realtors website: TRID Changes Coming.

Additional TRID Resources

CFPB Webinars

Additional Resources

We are here to help if you have further questions. Please email info@inlanta.com if you have specific questions about TRID and its implementation.

Our Mission Statement

Our mission is to be the home financing partner that you trust to serve your family, friends and community. Through our family of dedicated mortgage professionals, our commitment is to deliver an exceptional experience. Our unwavering dedication to integrity, honesty and ethics is the foundation of all of our relationships.

About Inlanta Mortgage

Headquartered in Brookfield, Wisconsin, Inlanta Mortgage is a growing mortgage banking firm committed to quality mortgage lending, ethical operations and strong customer service.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Freddie Mac and Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs.

Inlanta Mortgage was recently named a Top Mortgage Lender in 2013 as well as 2012 by Scotsman Guide. Inlanta was named a Top Workplace in 2014 as well as in 2012. Inlanta has also been named one of the “Top 100 Mortgage Companies in America” in 2011, 2012 and 2013 and one of the 50 Best Companies to Work For by Mortgage Executive Magazine.

Inlanta Mortgage, Inc. NMLS #1016

 

Pre-Approvals for Christmas

House for Christmas

What could be a better Christmas gift than a new home? While it’s unlikely anyone will buy you one – you could always treat yourself. Get pre-approved for a mortgage and take Christmas shopping to a new level!

Pre-Approval Process

First of all, let’s make an important clarification. Pre-qualifications are not the same as pre-approvals.

Pre-qualifications will give you an idea of what kind of loan you may qualifiy for and can typically be completed in minutes. This informal estimate may be just fine for those in the very early stages of home buying process.

Pre-approvals are more involved and are a better indication of your ability to fully qualify for a mortgage loan. With a pre-approval, we will gather all the information we need to begin the loan process. This typically involves a credit check as well as income and asset verification. Typical documents required for a pre-approval include:

  • Bank statements
  • W-2s
  • Drivers License/Identification
  • Paystubs
  • Proof of IRAs or retirement accounts and their balances

Good Faith Estimate

After successfully completing the pre-approval process, you will receive a Good Faith Estimate (GFE). A GFE is a brief document that details the likely terms of the loan, including interest rate, loan type, and closing costs. All that said, a pre-approval is not a binding agreement between you and your lender – final loan approvals require the attention of our experienced underwriting team.

Pre-Approval Benefits

Pre-approvals have several advantages over pre-qualifications:

  • Your Realtor knows you’re serious when you present a pre-approval letter – and will work even harder on your behalf!
  • Sellers prefer to negotiate with prospective buyers with pre-approvals over simple pre-qualification letters – often times sellers won’t even consider your offer without a pre-approval letter from a licensed mortgage loan originator!
  • Your mortgage pre-approval letter takes into consideration down payment percentages, interest rates, property taxes and mortgage insurance – which makes it clearer to you (the buyer) just how much you can truly afford to borrow.
  • A solid pre-approval will help you get your loan processed faster. Getting a pre-approval could take your offer from a 60 day closing to as little as 30 days – with Inlanta’s express underwriting you may be able to close even faster!

Shop Smart

You’re not likely to shop for a car without knowing what you can afford so why would you house shop without knowing what type of loan you may qualify for? A pre-approval helps you make educated decisions about the most important investment of your life.

Contact an Inlanta Mortgage loan officer near you and begin the pre-approval process today to enjoy a new home in 2013! Happy Holidays & Happy House Shopping!

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.