TOP 10 THINGS TO KNOW ABOUT THE NEW SETTLEMENT CHANGES

Settlements for real estate property are going to change drastically on October 3, 2015. This is the new TILA-RESPA Integrated Disclosures, commonly referred to as TRID.

1. These changes will apply to loan applications submitted on or after 10/3/2015. If you made a loan application prior to this date, it will not apply to your transaction even if your settlement is scheduled after October 3^rd.
2. Buyers will receive a new closing statement form called the Closing Disclosure (CD). This statement will be provided to all buyers by their lender.
3. The CD must be delivered to the buyer at least 3 days prior to the scheduled closing (settlement) date.
4. The CD cannot be sent to the buyer’s real estate agent by the lender – only the buyer can give this document to their agent.
5. The CD sent to the buyer will not include the seller’s side of the transaction and closing agents (title companies) will prepare a separate CD for sellers.
6. Changes made to the CD (APR, change in loan produce, etc.) may trigger a new 3-day waiting period.
7. Changes and adjustments that affect the value of the property (appraisals) may trigger additional disclosure and review periods.
8. It will take longer to close a purchase. Most settlements will occur 45 to 60 days after contract acceptance.
9. Two pre-settlement walkthroughs will become commonplace – one that is 7 to 10 days in advance of closing and a second inspection on the day of closing.
10. Settlements will now be called “Consumations.”