As you may already be aware, new banking regulations will be going into effect this upcoming October, which contain some substantial changes to how bank loans will occur going forward.
These regulations-the TILA RESPA Integrated Disclosure or “TRID” requirements-will specifically impact the timing and scheduling of all closings that have loan elements. Lenders will now have to disclose most closing figures and adjustments to their borrowers at least three business days prior to closing in addition to providing other new forms and disclosures.
While our purchase/sale representation group and bank attorney group have each been training to prepare for the new TRID RESPA requirements, we want to remind our clients and friends in the industry that it remains critical to have a good, experienced team of real estate brokers and mortgage bankers to avoid costly delays and issues due to these changes. We recommend that you account for possible delays when planning rate locks, moves and closings, as other parties may not be prepared for the new requirements. We can recommend bankers in the industry for pre-approvals who have already been trained to comply with the new systems and who always take the time up front to carefully consider any mortgage loan options/applications.
Also of interest to borrowers are the jumbo mortgage products that have been in the headlines recently, due to changes in credit standards and the possible increase in baseline jumbo loan thresholds. These products could also affect the market and loans in the near future and is another topic to speak about with your banker. We would also recommend that clients discuss the loan product with their lawyer to make sure the language in the contract of sale covers the type of loan they are seeking.
As always, we remain available via email or telephone and are happy to address any questions, concerns or comments you may have about the aforementioned topics.