CFPB – So How Is It Going?
TRID Tips For Realtors
So I told you the world wasn’t going to come to an end with the new CFPB changes. And while most of you haven’t even had a closing with the new rules, I just wanted to re-post my CFPB Tips for Realtors as I think they will be helpful as your first TRID closing approaches.
- As always, explain to your buyers early on that when asked for information from you, their lender or the closing attorney that they respond as timely as possible as to not delay the closing process.
- Be proactive and send the closing attorney information you know they will need for the closing (i.e., your real estate license number, HOA contact information, that your client will not be at closing and will be a mail away, home warranty, commission splits, repair invoices, etc.). The days of sending this information the day of closing or even just a few days before closing cannot happen under the new regulations.
- Lenders are going to use the 3 or 7 business day rule when sending the borrowers the Closing Disclosure (CD). Each lender will decide which rule they will use. Those using the 3 business day rule will send the CD by email or hand delivery and those using the 7 business day rule will use the mail (and possible email as well). This means that the CD will be mailed to the borrower at least 3 or 7 business days before the scheduled closing date. If that timeframe is not met (meaning the lender is not able to send it out in time) the closing date will slide.
- Many lenders are recommending that you include a 45-60 days closing date in your contracts. If you know the lender that will be working with your client prior to drafting the offer I would strongly suggest contacting them to inquire about the closing date).
- You might want to require the seller to have any “repairs” completed 10 days prior to the scheduled closing date and perform a pre-pre closing walk though inspection. Hopefully this will eliminate the issue of repairs not being completed when you go to conduct the final walk through. The CD will be going out to the buyer well in advance of the closing date and repairs not completed may cause a delay in the closing.
- Due to the CD containing non-public information, you will not be provided a copy of the CD (unless your client gives you a copy). I wouldn’t even ask your client for a copy of it. We will be providing all parties something called a Master Settlement Sheet which will be similar to the HUD you are accustomed to seeing at the closing table.
As always, if you need help with anything at all, please do not hesitate to contact me anytime at (912) 484-1996 (even nights and weekends) or email me at jgerber@brannenlaw.com.