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.
- 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 3rd.
- Buyers will receive a new closing statement form called the Closing Disclosure (CD). This statement will be provided to all buyers by their lender.
- The CD must be delivered to the buyer at least 3 days prior to the scheduled closing (settlement) date.
- 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.
- 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.
- Changes made to the CD (APR, change in loan produce, etc.) may trigger a new 3-day waiting period.
- Changes and adjustments that affect the value of the property (appraisals) may trigger additional disclosure and review periods.
- It will take longer to close a purchase. Most settlements will occur 45 to 60 days after contract acceptance.
- 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.
- Settlements will now be called “Consumations.”