TILA-RESPA Integrated Disclosure Rule Goes into Effect October 3rd
As of October 3rd, the TILA-RESPA Integrated Disclosure Rule, or TRID, administered by the Consumer Financial Protection Bureau, is effect for most house sales nationwide.
This rule, mandated by the Dodd Frank Wall Street Reform Act, was enacted to help prevent a repeat of the 2008 mortgage crisis. The Consumer Financial Protection Bureau, or "CFPB" is the governmental entity formed to prevent lending abuses and regulate consumer finance issues.
Scottsdale partner Richard V. Mack, quoted in an AZCentral article about the TRID, states, "The theory behind TRID is that consumers will be given more time to comparison shop lenders, rates, and payback terms for their mortgages. The objective for consumer fairness and information is a good one."
"However," he adds, "the downside of that is that loans will take longer to process and may be more difficult, especially this fall. Loans that previously closed in 30 days may take 45 to 60 days or even longer now."
Fredric Trester, a named partner who leads the firm's Real Estate Team, recommends, "Real estate agents should counsel their clients to allow enough time to be in compliance with the new law."