TRID goes into effect on October 3rd, as most people know. TRID replaces the “Good Faith” and “Truth In Lending” with a new document called a “Loan Estimate.” The Loan Estimate is easier to read and is probably an improvement over the current documents.
The other document that TRID requires, that is the cause for the most concern, is the Closing Disclosure. This document replaces the current HUD-1 and other closing statements. Borrowers must receive this document 3 business days (Saturdays and Sundays not included) before they can sign loan documents.
B/c every number on the Closing Disclosure must be accurate, lenders will need to have loan documents in title 3 business days sooner than they do now. The three day waiting period should be the only major cause for delay, unless an error is found in the numbers. If there is an error, the Closing Disclosure needs to be re-drawn and the waiting period starts over.
The whole process is not unlike “table funding” where lenders like Quicken make sure the HUD-1 is perfect before they email loan docs and then fund on the same day the borrower funds.
In any case, we foresee a few days of delay initially b/c of TRID, but once we work out the kinks, we think we can close as fast as ever. We will keep you posted.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646