"Know before you owe" Mortgage Disclosure rule

"Know before you owe" Mortgage Disclosure rule

For the fellow investor that sell properties to retail buyers, this is a new regulation that will be in effect next October of 2015 and you need to be informed to avoid further delays in closing.

TILA-RESPA Integrated Disclosure Rule (TRID) Summary for Investors:
- Only applicable on closings that involve an institutional lender issuing a mortgage loan.
- NOT applicable to all cash, hard money, owner financing, subject to or other such investor style closings.
- Lender required to issue a Closing Disclosure 3 days prior to closing (or what they are calling “consummation”).
- In order for the lender to issue a Closing Disclosure, they will need a final HUD from the closing company well in advance of the closing date.
- Closing companies must now get used to preparing HUDs much further in advance of the closing.
- Lenders already take their sweet time issuing the Clear to Close and drawing Docs, so this new requirement will add a few more business days for most loans to close.
- If there are no last minute changes to the HUD (which always happens), the closing will take place 3 days after the Closing Disclosure is delivered to the borrower.
- However, if there are any significant changes to the HUD after the Closing Disclosure is delivered, a new one may be required restarting the 3 day clock.
- In other words, EXPECT DELAYS when selling a property to a retail buyer who is getting a mortgage to purchase your property.

To know more about this subject go to http://www.consumerfinance.gov/regulatory-implementation/tila-respa/#add...


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