Many roles have changed with the roll out of the TRID regulations, otherwise known as the, “Know Before You Owe rule”. For one, the HUD is now rolled into the Closing Disclosure (CD), which is the final closing document signed at the closing. Most lenders are now preparing this document themselves, rather than having the attorney or title company create it, because the lender is now legally responsible for its accuracy.
One complication with this change is that every lender has their own interpretation of this regulation and their own policies and procedures that they follow. This has resulted in the TRID process being very complicated for attorneys and title companies, because their closing responsibilities can change from lender to lender.
However, one thing that has not changed is the fiduciary responsibility that an attorney has to protect the buyer, no matter if they are also representing the lender as well.
As a result, attorneys need to stay on top of the mortgage commitment date to protect the borrower’s down payment. In order to fully protect the buyer’s interests, the attorney should also track the delivery of the CD. A CD has to be in the hands of the buyer at least three days prior to closing or the loan will not close. Therefore, at least four days before the closing, the attorney should reach out to the lender to be certain that the closing is on schedule.
When an attorney calls at 5pm the day before to inquire about meeting a commitment date or a CD delivery, they are often too late. This happens too often in the mortgage business. Fortunately, we deliver our commitments early and we don’t rely on the buyer’s attorney to keep us on track. However, that is not the story for all lenders.
Protect your consumers by following up and tracking important dates for their transaction and all loans will move forward with less stress.
What have you learned in the early days of TRID? I would love to hear from you!
