TRID WAITING PERIOD
TRID WAITING PERIOD - how is that working for us? It has been over six months since the new TRID guidelines surfaced. Lenders, title companies, brokers, buyers, sellers, real estate agents are all getting used to the difference between the good old days when we had a one or two page HUD1 to look over and now.
Now a borrower receives a loan estimate within 3 days of applying for a mortgage. They receive a closing disclosure once all fees have been received and the loan is approved. The format of these two are similar. Just before closing the title company produces an ALTA closing disclosure. This form splits up costs between the columns for the lender and debit and credit columns for the buyer and seller.
For the most part I can say the lenders I'm working with as a mortgage broker make great effort to close by contract closing dates and have been mostly successful. In the last week, however, I had one loan overshoot the date by two days and another by one day.
No one was happy when a closing date is missed due to TRID waiting periods, but it is real. Even if the buyer WANTS to close without waiting it simply is not an option. What we can do is be sure both buyer and seller are aware the guidelines are beyond our control. TRID says the buyer must wait, so they must wait. Maybe someday there will be a revision that would take us back to not imposing a 3 day TRID wait on buyers. But for now it is reality.
The one loan I had that went 2 days past had a listing agent who badgered all parties, threatening to put the property back on the market and calling names. She set unrealistic closing dates and times with her seller without a loan approval, setting her side up to fail. Then when the seller was disgruntled she did not take responsibility for that; she was like a 5th grader on the playground.
TRID is here and until and IF it is ever revised to make it more consumer friendly it is what it is. I can't speak for everyone. I can say my borrowers have an extremely keen understanding of what is being offered and approved for them and they don't need the 3 day TRID delay between final approval and closing. Most of the time if we run into an issue with the 3 days it is because the appraisal was ordered late and had to be revised. Until it is revised and cleared the closing disclosure cannot go out. Since the closing disclosure has to be out 3 days before closing it can cause some last minute angst.
I read that the cfpb thinks borrowers like the new process. If that is so I have not met any those borrowers yet. What we have to do is try and be professional and keep our clients happy throughout the process to the best of our ability.