The Road to the  New TILA-RESPA Integrated Disclosures (TRID)

Part 3 of 4
Question:  What happens when changes occur at the last minute?

Answer:   Under the new rules, a change can trigger a new Closing Disclosure and a new three day waiting period if any of the following events occur between the time the Closing Disclosure was provided and the date of consummation (loan document signing):
  • Changes to the APR greater than 1/8 of a percent (or 1/4 of a percent for loans with irregular payments or periods) that cause the disclosures to become inaccurate.
  • Changes to the loan product that cause the disclosure to become inaccurate.
  • The addition of a prepayment penalty, causing the disclosure to become inaccurate.
The additional three-business-day waiting period after the revised Closing Disclosure is subject to a consumer's written waiver for a bona fide financial emergency.

Not all changes to the information in the Closing Disclosure require a restart of the waiting period.  For less significant changes than those described above, the lender may provide the consumer with an updated Closing Disclosure at or before the closing reflecting such changes. 
 
Question:  Who is responsible for delivering the Closing Disclosure to the Consumer?
 
Answer:  Delivery of the CD to the Consumer is the legal obligation of the Creditor.
  • Creditor is to ensure the CD meets content, delivery and timing requirements
  • Creditor may deliver the CD as follows:
- Provide to consumer in person - considered received on the day provided.

- Mail or other delivery methods, including email.  Considered received three business days after placed in the mail or delivered, unless creditor can evidence earlier receipt.

- Creditors may use electronic delivery methods with consumer consent and other provisions of the Electronic Signatures in Global and National Commerce Act (ESIGN)

Did you miss earlier installments of TRID Talk with Elite Escrow?
Click HERE for Part 1
Click HERE for Part 2
Resources

 

  • Click HERE for the Real Estate Professional's guide 
  • Click HERE to compare disclosures, view sample forms and learn the new timelines on the CFPB's "Know Before You Owe" webpage.
  • Click HERE to view a calendar showing the timing of disclosures for a sample real estate purchase transaction.
  • The CFPB released a TOOLKIT that guides consumers through the process of shopping for a mortgage and buying a house.  Additional Buyer/Borrower resources are also available HERE.
  • The National Association of Realtors offers RESOURCES to help REALTORS┬« prepare for the new disclosure requirements. 

Watch the July 16, 2015 webcast on changes to the closing process, 
with NAR Senior Counsel Finley Maxson


Look for future installments of TRID TALK with Elite Escrow.
 
Elite Escrow Services of San Diego is here to guide you through the challenges of the new regulations.  We are committed to working closely with you, keeping lines of communication open to ensure the transition into the new regulatory environment is seamless.

 

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The information contained herein is provided as an accommodation to the real estate industry and to our clients. It is not intended to be nor does it represent professional legal or financial advice. Elite Escrow makes no representation as to the legal sufficiency or financial consequences of information which is supplied on this website, and we strongly encourage participants in real estate transactions to seek advice from independent legal and financial counsel.