On October 3, 2015 a new RESPA/Truth in Lending Act integration rule, often referred to as “TRID”, went into effect that significantly changes the settlement process. The final rule integrates existing disclosures with new requirements from the Dodd-Frank Act to improve consumer understanding of the mortgage process, aid in comparison shopping, and help to prevent surprises at the closing table.
The major changes the rule implements include:
- New “Loan Estimate” (LE) form replaces Good Faith Estimate (GFE) and initial Truth-in Lending disclosure; must be given to consumer within three business days of application
- New “Closing Disclosure” (CD) form replaces and combines the HUD-1 and final Truth-in-Lending disclosures; must be received by consumer three days before consummation of loan
Since the rule was finalized at the end of 2013, NAR has been educating members about how it will impact their business through webinars, forums and articles. To ensure that members can find this information all in one place, NAR has created a RESPA/TILA Integration resources section at www.realtor.org/respa.
- Flyer: Overview of Changes to RESPA/TILA Disclosures
A one page document which provides an overview of the changes to the RESPA/TILA disclosures.
- Video: HUD-1 Going Away: Understand New Closing Forms, Procedures
A video which walks members through the new settlement process
- Webinar: RESPA/TILA Integration Update
A detailed webinar with RESPA attorney Phil Schulman on the upcoming changes to the RESPA/TILA disclosures.
- RESPA Webinar Hosted by CFPB and Federal Reserve
The Consumer Financial Protection Bureau and the Federal Reserve hosted a webinar on changes coming to the closing process and forms beginning August 1.
- Video: Window To The Law: TRID Changes Coming
Finley Maxson, NAR's Senior Counsel, discusses the integrated disclosure forms created by the Consumer Financial Protection Bureau and the new requirements that will affect real estate transactions, including changes to the form contracts created by associations.
- Webinar: The New Closing Rules
Learn about the Oct. 3 changes to the closing forms and procedures in an hour-long webcast with closing expert Phil Schulman and NAR Senior Counsel Finley Maxson. The webcast, The New Closing Rules, aired live July 16th and is available on YouTube.
- CFPB: Early TRID Enforcement Won’t Be Punitive
The federal regulator whose agency is implementing changes to the closing forms and procedures Oct. 3 told a congressional hearing the goal is not to be punitive while lenders are still getting used to the changes. "For the first period, which may last many months . . . if we see errors, we will point out what they are and how they should be corrected," Director Richard Cordray of the Consumer Financial Protection Bureau told a July 15 Senate Banking Committee hearing. “We will not be looking to be punitive to people.” NAR supports giving lenders and others time to learn the changes.
- Guide Available on Closing Rule Changes
The Consumer Financial Protection Bureau has released an online guide to help you understand upcoming closing process changes.
- CFPB Offers Assurance on New Closing Rules
The Consumer Financial Protection Bureau (CFPB) has reiterated that its early steps to enforce the new closing rules that went into effect on Oct 3 would be corrective, not punitive. In a letter to the American Bankers Association on which NAR was copied, CFPB director Richard Cordray said the agency would initially focus on an institution's "overall efforts to come into compliance" with the rules. NAR issued a statement applauding Cordray's commitment to a safe-harbor period for entities that act in good faith during the early stages of the rules’ implementation. Learn more about Cordray’s recent appearance at NAR’s Washington offices in the latest The Voice for Real Estate news video.
- FAQ on New Closing Rules Available
NAR has compiled answers to questions raised by members about the new federal closing rules that went into effect in October.
NC REALTORS® RESOURCES
- Legal Q&A: TRID - Agent's duty to review Closing Disclosures
QUESTION: I represent a buyer. I have a closing scheduled later in the week. When I called the closing attorney to request copies of the Closing Disclosures for the buyer and seller, I was told that the attorney could not, or would not, share those documents with me. I am concerned that I may be subject to discipline if I don't review those documents. What should I do?
- Webinar: The Demise of the HUD-1: Will You Be Ready August 1st?
On May 13, NC REALTORS® Legal Counsel Will Martin facilitated this webinar with presenting attorneys Kim Rosenberg and Elizabeth Harrison. They discussed changes to the HUD-1 closing statement, the Truth In Lending disclosure and the Good Faith Estimate.
- Webinar Q&A
On May 13, 2015, NC REALTORS® hosted a webinar on upcoming changes to closing procedures as a result of the new “TRID” Rules (short for Truth-in-Lending-RESPA Integrated Disclosure Rule). A number of questions posed near the end of the webinar to the presenters, Raleigh attorneys Elizabeth Harrison and Kim Rosenberg, could not be answered due to time constraints. With the assistance of NC REALTORS® counsel Will Martin and Greensboro attorney Nancy Ferguson, Elizabeth and Kim have attempted to answer the questions.
- Webinar: Top 20 FAQ’s on TRID
In this webinar the panel will discuss Closing Attorney, Realtor® and Lender perspectives on communications and planning of timelines and workflows for timely closing under the new TILA-RESPA Integrated Disclosure (“TRID”) requirements – from due diligence deadlines in the Contract and earlier walk-throughs to avoiding last minute delays for change approvals. This webinar will be held September 16th at 2:00 pm.