Are You Prepared to Deal with New Changes in the Mortgage Proess?

When the housing market collapsed in 2007, it was understandably necessary for the federal government to react by making a point to keep a tighter leash upon the financial industry. Therefore, in response to the mortgage crisis, the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2011, which created a new government agency—the Consumer Financial Protection Bureau (CFPB).

TRID

In an effort to avoid another housing disaster, the CFPB settled upon a set of stricter mortgage rules and regulations that recently went into effect on the 3rd of October. Known as “TRID,” (which stands for: Truth-in-Lending Act (TILA) + Real Estate Settlement Procedures Act (RESPA) + Integrated + Disclosure) the goal was to:

1. Overhaul and improve the abundance of archaic industry forms, which date back to the late sixties and mid-seventies, and

2. To slow down the mortgage process in an effort to give the borrower more time to review their forms.

In short, these new rules are expressly geared towards improving the home-buying experience for consumers; however, it’s important to note that the overall mortgage process is going to be a lot longer and more challenging than it was in the past.

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