There seems to be apprehension about new loan disclosures that will be required on August 1st. There shouldn’t be.
Current disclosures are known as TILA (Truth In Lending Act) and RESPA (Real Estate Settlement and Procedures Act). And frankly, they are too confusing.
The new disclosures are called TRID or TILA/RESPA Integrated Disclosures, and they look to be much less confusing for consumers.
Under TRID, lenders will be forced to email accurate closing statements to borrower 3 business days prior to close of escrow. Borrowers will need to acknowledge receipt of the statement as well (or closing will be delayed).
The final closing statement will need to be very similar or the same as the one that was emailed, or closing will be delayed 3 business days. If lenders and title companies are on the ball, however, there should be no issues.
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