Ready or not, here comes TRID

The implementation of the “Know Before You Owe” Rule, more commonly referred to as TRID, begins tomorrow. An enormous effort has been made to assist Realtors® in preparing for these changes. Here are the top five signs that you are ready for TRID.

1. You have the PAR TRID page bookmarked. This is a collection of different materials from the Consumer Financial Protection Bureau (CFPB), the National Association of REALTORS® and relevant JustListed articles. This is your one-stop shop for sample forms, timelines and instructional materials you can use to educate yourself and your clients.

2. You are familiar with the changes to standard forms. On Sept. 18, five forms were released after having been revised to accommodate the adjustments TRID will make to your practice.

3. You have reviewed a Loan Estimate form and know the associated timelines. The Loan Estimate is the first of the new documents that a potential buyer will receive from the lender. Much of the information received is the same, but the manner in which it will be conveyed is intended to be easier to read and understand.

4. You have looked at a sample Closing Disclosure and know the associated timelines. This document must be received by the buyer at least three business days prior to the scheduled closing. The Closing Disclosure should reveal the final, actual costs of consummating the loan and may only be revised in certain circumstances.

5. You understand the importance of communicating with all of the people involved in the real estate transaction, including the client, lender and insurer. Expectations need to be communicated clearly and each contact must be treated as a priority.

Remember that PAR will do all it can to support its members. If you have questions or need clarification, please contact us.